April 2021 NARFE Magazine by NARFE

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

APRIL 2021 VOLUME 97 ★ NUMBER 3

P. 20

Best PLACES to Retire P. 28 State Tax Roundup P. 34 Future of USPS

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Contents APRIL 2021

COVER STORY PAGE 20

FEATURE PAGE 34

BEST PLACES TO RETIRE Federal benefits expert Tammy Flanagan shares strategies for choosing the right location for your needs.

THE UNCERTAIN FUTURE OF USPS Amid heavy losses over the past decade and increasing costs per delivery, the iconic agency seeks a way forward.

Special Feature

Columns

28 State Tax Treatment of Federal

4 From the President

Annuities

Washington Watch

6 Bill to Repeal WEP and GPO Reintroduced in House

7 Legislation to End USPS Prefunding Mandate Reintroduced

8 Prepare to Engage Lawmakers During the First Extended Congressional Recess of 2021

9 President Biden Rescinds

Schedule F, Other Executive Orders

9 FAIR Act Proposes a 3.2 Percent Pay Increase

10 Equal COLA Act Reintroduced

A NARFE PUBLICATION FOR FEDERAL EMPLOYEES AND RETIREES

APRIL 2021 VOLUME 97 ★ NUMBER 3

42 Managing Money Departments P. 20

16 Questions & Answers

Best PLACES to Retire

44 For the Record 46 NARFE News 50 Member Perks 52 The Way We Worked

P. 28 State Tax Roundup P. 34 Future of USPS

ON THE COVER Illustration by TGD

Connect with us! Visit us online at www.narfe.org Like us on Facebook NARFE National Headquarters Follow us on Twitter @narfehq

NARFE MAGAZINE www.NARFE.org

APRIL 2021 VOLUME 97 ★ NUMBER 3

REGIONAL VICE PRESIDENTS

EDITORIAL DIRECTOR Jenn Rafael

REGION I James C. Risner

SENIOR EDITOR Mabel Yu CONTRIBUTING EDITOR Jessica Klement CREATIVE SERVICES MANAGER Beth Bedard ADDITIONAL GRAPHIC DESIGN TGD EXECUTIVE EDITOR Helen Mosher EDITORIAL BOARD Kenneth J. Thomas, Kathryn E. Hensley, Barbara Sido CONTACT US NARFE Magazine 606 North Washington St. Alexandria, VA 22314-1914 Phone: 703-838-7760 Fax: 703-838-7781 Editorial: communications@narfe.org Advertising Sales: Anita Nelson advertising@narfe.org NARFE FOR THE VISUALLY IMPAIRED ON THE TELEPHONE: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFBNEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. ON DIGITAL AUDIO: Issues of NARFE Magazine are also available in audio format through the National Library Service for the Blind and Physically Handicapped (NLS). For availability, call 202-727-2142 or your local NLS service provider. The Association, since July 1970, has been classified by the IRS as a tax-exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NARFE MAGAZINE APRIL 2021

NATIONAL OFFICERS

KENNETH J. THOMAS President; natpres@narfe.org KATHRYN E. HENSLEY Secretary/Treasurer; natsectreas@narfe.org

EXECUTIVE DIRECTOR BARBARA SIDO execdir@narfe.org

(Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 207-540-6233 Email: rvp1@narfe.org

REGION II Gary Roundtree, Sr.

(Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 443-929-7045 Email: groundtreesr@comcast.net

REGION III Clarence Robinson

(Alabama, Florida, Georgia, Mississippi, South Carolina, Puerto Rico and Virgin Islands) CELL: 404-312-8028 Email: crobin8145@att.net

REGION IV Robert L. Helfrich

(Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 317-501-1700 Email: rlhelfrich@yahoo.com

REGION V Cindy Reneé Blythe

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NARFE Magazine (ISSN 1948-4453) is published monthly except in February and July by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St., Alexandria, VA 22314. Periodicals postage paid at Alexandria, VA, and additional mailing offices. Members: Annual dues includes subscription. Nonmember subscription rate $48. Postmaster: Send address change to: NARFE Attn: Member Records, 606 N. Washington St., Alexandria, VA 22314. To ensure prompt delivery, members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright © 2021, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE Magazine, but at the same time we will not undertake to guarantee the reliability of our advertisers.

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From the President NARFE’S MISSION STATEMENT To support legislation and regulations beneficial to federal civilian employees and annuitants and potential annuitants under any federal civilian retirement system and to oppose those detrimental to their interests. To promote the general welfare of federal civilian employees and annuitants and potential annuitants, to advise and assist them with respect to their rights under retirement, health and other employee and retiree benefits laws and regulations, and to represent their interests before appropriate authorities. To cooperate with other organizations and associations in furtherance of these general objectives.

Sobering, but Hopeful

e live in the age of hyperpartisanship, conspiracy theories, alternative facts and

the questioning of science. In our country, members of both political parties are being pushed further to the right and the left, with few people actively looking to find common ground. America is as divided and depleted as ever. Our newly elected legislators and president have been left with the impossible task of governing a polarized country. It has been more than a year since the first case of coronavirus arrived in the United States. The virus has now claimed the lives of more than 500,000 Americans as of press time and has left many of us looking to find available vaccines. Our economy shrank by 3.5 percent in 2020, shuttering businesses, schools and events, and marking the first annual contraction since the Great Recession. Our nation’s gross domestic product (GDP) has suffered its largest decline since 1947, and we have experienced the steepest economic collapse since the Great Depression, wiping out more than 20 million jobs and years of economic growth. What do we have to look forward to? Are there any expectations for a return to pre-pandemic life? As bleak as it may feel, there is also some good news to be had and optimistic predictions ahead: • The administration has set an early agenda focused on the health and economic crises.

• Economists expect our economy to bounce back quickly in the second half of 2021, assuming enough Americans are vaccinated, and a larger coronavirus relief package is in the works. (Remember, any new spending today will be paid for by increased federal debt and result in possible tax increases down the road.) • Passage of the omnibus in late 2020 has funded federal agencies through September 2021. • Federal employees have received a 1 percent pay raise. • The expansion of federal employee leave authorities involving use-or-lose annual leave allowed employees to carryover 25 percent more leave than the normal limit, and paid parental leave is now available to employees who were left out of the original legislation, providing up to 12 weeks of paid parental leave for the birth, adoption or foster placement of a child. • A cost-of-living adjustment (COLA) of 1.3 percent was paid to most federal retirees. The big story of 2021 could be a very hopeful one. This will be the year of the coronavirus vaccines. Though administration of the vaccines is off to a slow start nationwide, efforts will ramp up and eventually protect most Americans. We hope to see the clouds of grief, frustration and helplessness lift this year. We might even learn a few lessons that will help us better prepare for what comes next. Stay safe.

KENNETH J. THOMAS NARFE NATIONAL PRESIDENT natpres@narfe.org 4

NARFE MAGAZINE APRIL 2021

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Washington Watch

Bill to Repeal WEP and GPO Reintroduced in House

n January, Rep. Rodney Davis, R-IL, reintroduced the Social Security Fairness Act, H.R. 82, to fully repeal the Windfall Elimination Provision (WEP) and Government Pension Offset

(GPO). These policies significantly reduce or eliminate the earned Social Security benefits of federal, state, and local government retirees and their surviving spouses. Join NARFE’s call-to-action campaign to garner support for and increase cosponsors of the bill by visiting NARFE’s Legislative Action Center at www.narfe.org.

According to a December 2020 report from the Congressional Research Service, the WEP affects 1,948,427 beneficiaries, including 1,836,538 retired workers, 12,520 workers with disabilities, and 99,369 spouses and children. The GPO affects 716,662 beneficiaries, 47 percent of whom are widows or widowers. About 71 percent of those affected by the GPO had their benefits fully offset, while 29 percent had their benefits partially offset. Government retirees affected by the WEP are those who collect both an annuity from their government jobs (during which they did not contribute to Social Security) and Social Security benefits from private employment. This includes 6

NARFE MAGAZINE APRIL 2021

federal retirees who began their employment prior to 1983 and are covered by the Civil Service Retirement System (CSRS), under which they did not pay the 6.2 percent payroll tax toward Social Security, and, therefore, did not earn any Social Security benefits based on their federal

work. The WEP does not apply to federal employees covered by the Federal Employees Retirement System (FERS), as they pay the 6.2 percent payroll tax and earn Social Security benefits based on their government work. Social Security benefits are calculated using a progressive formula in which an individual’s average indexed monthly earnings (AIME) are multiplied by three progressive factors—90 percent, 32 percent and 15 percent—at different levels of AIME, resulting in the basic monthly benefit. Under the WEP, the 90 percent factor is reduced to as low as 40 percent, resulting in a much lower benefit for those affected.

APRIL ACTION ALERT: WEP AND GPO REPEAL NARFE is calling on members of the House of Representatives to cosponsor the Social Security Fairness Act, H.R. 82, legislation to repeal the WEP and GPO. Together, these provisions reduce the earned Social Security benefits of more than 2.5 million people nationwide. Contact your legislators and urge them to cosponsor this bill by visiting NARFE’s Legislative Action Center at www.narfe.org and sending a personalized message to your lawmakers.

MYTH VS. REALITY MYTH: A lawmaker’s cosponsorship of a bill is a meaningless action that does nothing to advance the legislation. REALITY: Cosponsoring legislation is important because current House rules grant a floor vote to a bill when it reaches 290 cosponsors. Cosponsoring is also a strong signal of a bill’s popularity and improves its chances for committee action and passage.

In 2021, the WEP can result in a monthly benefit that is $498 lower than the amount produced by the regular benefit formula. This causes a disproportionate reduction in benefits for workers with lower monthly benefit amounts

than those with higher benefit amounts. The Government Pension Offset prevents government retirees who receive an annuity from collecting full Social Security spousal or survivor benefits. Due to the GPO, Social

Security survivor benefits are reduced by two-thirds of the federal retiree’s government annuity. Often, this leaves widows and widowers with no survivor benefits at all. —SETH ICKES, GRASSROOTS ASSISTANT

NARFE’s Voice Resonates in Latest Postal Service Reform Effort

uring nearly a decade and a half of debate in Congress, NARFE has called on postal reform efforts to maintain promises made to postal retirees while allowing the U.S. Postal Service (USPS) flexibility to improve its financial stability. In February, House Oversight and Committee Chairwoman Carolyn Maloney, D-NY, presented draft postal reform legislation incorporating provisions NARFE has long advocated, including Medicare integration that preserves choice for current postal retirees regarding whether to enroll in Medicare Part B. In advance of a hearing reviewing the legislation and other postal reform solutions, NARFE National President Ken Thomas submitted a statement for the record outlining the organization’s views on postal reform, which can be found on NARFE’s website. Thomas applauded the draft bill’s Medicare integration

provisions, which preserve choice for current postal retirees. Specifically, current retirees age 65 and older would have the option to enroll in Medicare Part B without penalty; retirees ages 55 to 64 would be automatically enrolled at age 65 but would have a three-month window to optout. The integration would save the Postal Service tens of billions of dollars over the next decade. Beyond Medicare integration, the draft bill would end the requirement that the agency fully prefund the future health insurance benefits of its retirees, a mandate that has cost tens of billions of dollars and is the driving force behind the recent financial losses. It would also maintain USPS service standards by requiring the agency to meet annual performance targets and consult the Postal Regulatory Commission before decreasing mail delivery times. During the hearing, Postmaster General Louis DeJoy expressed support for the

draft bill and noted his 10-year strategic plan would work in tandem with the legislation. In a response to a question from Rep. Jamie Raskin, D-MD, DeJoy indicated that the coming strategic plan would make changes to first-class mail and would cut mail air transport but did not provide further detail. Republicans on the committee raised concerns with the draft bill, including Ranking Member James Comer, R-KY, who said the bill did not address some “hard decisions” necessary to achieve reform. Rep. Jody Hice, R-GA, ranking member of the Government Operations subcommittee, stated that he supports “basic concepts” in the draft bill, like repeal of the prefunding mandate, but more needs to be done. As the legislation is introduced and moves through the process, NARFE will continue to provide its members with updates. —BY SETH ICKES, GRASSROOTS ASSISTANT NARFE MAGAZINE www.NARFE.org

Washington Watch

NARFE GRASSROOTS ADVOCACY LEARN MORE about how you can take action to protect your earned pay and benefits by reviewing NARFE grassroots materials at www.narfe.org/advocacy

Prepare to Engage Lawmakers During the First Extended Congressional Recess of 2021

et ready to engage with your legislators March 29 through April 9, when the House and Senate are scheduled to be in recess. During the first extended congressional recess of 2021, you have two full weeks to meet with elected officials as they return to their home districts and states. With the break happening within the first 100 days of the new session of Congress, freshman lawmakers in particular will be eager to report on the work they have begun in their newly assigned committees. This is a great time to seek opportunities to discuss NARFE’s legislative priorities and other concerns. NARFE federation legislative chairs, congressional district leaders and senatorial leaders have already distributed welcome packets introducing new lawmakers to NARFE and can now try to schedule follow-up meetings as a second step in their relationship-building strategy. NARFE’s action plan for the recess is to focus advocacy efforts on bills we support, including: • The Social Security Fairness Act, H.R. 82, which would provide full repeal of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) so retired government

NARFE MAGAZINE APRIL 2021

workers who also worked in the private sector don’t see their Social Security benefits reduced. • The Equal COLA Act, H.R. 304, which would ensure that Federal Employees Retirement System (FERS) retirees receive the same costof-living adjustment as Civil Service Retirement System

DURING THE FIRST EXTENDED CONGRESSIONAL RECESS OF 2021, YOU HAVE TWO FULL WEEKS TO MEET WITH ELECTED OFFICIALS AS THEY RETURN TO THEIR HOME DISTRICTS AND STATES. (CSRS) retirees and Social Security beneficiaries. • The FAIR Act, H.R. 392, which would provide federal employees with a 3.2 percent average pay raise in 2022 and would make progress toward closing the gap between public- and private-sector wages. The raise consists of a 2.2 percent across-

the-board increase and an average 1 percent locality pay adjustment for most federal employees. Visit www.narfe.org to access issue briefs on these topics and updates on other legislative priorities. With pandemic social distancing requirements in effect across the country, expect that advocacy activities will remain virtual during the recess—and possibly for the remainder of the year. Other organizations are also looking to engage legislators during the recess, so remember to schedule meetings with your members of Congress as soon as possible—their schedules are likely to fill up fast. Visit www. townhallproject.com for a list of scheduled events in your state and congressional district. Don’t limit your plans to just this recess. Visit www.house.gov and www.senate.gov to access 2021 congressional calendars, so you can map out scheduled recess periods for the remainder of the year. Thank you for your advocacy and your continued support of NARFE’s legislative goals. Contact the advocacy staff at advocacy@narfe.org if you have any questions. —BY MARSHA PADILLA-GOAD, GRASSROOTS PROGRAM MANAGER

President Biden Rescinds Schedule F, Other Executive Orders

n January 22, President Joseph Biden rescinded the previous administration’s Executive Order (EO) 13957, which created Schedule F, a new federal employment category threatening the integrity of the merit-based, nonpartisan federal civil service— the government’s standard since the late 1800s. NARFE staunchly opposed the EO and lobbied both Congress and the new administration to overturn it. Had the EO been fully implemented, tens, or even hundreds, of thousands of federal jobs “of a confidential, policydetermining, policymaking or policy-advocating character” could have been converted into the new Schedule F classification within the excepted service. Reclassified employees would have been exempted from civil service rules and due process rights that ensure civil servants are hired based on merit, not political affiliation.

Merit-based civil service rules are integral to the functioning of our federal government. They validate the public’s expectations of a system that is efficient, fair, open to all, free from political interference, and staffed by honest and competent employees. These principles are vital to the continuity of government operations through changing administrations and to the preservation of institutional knowledge and expertise within the federal government. While President Biden’s recision of the EO is a good first step, Congress must act to prevent future administrations from implementing similar measures. NARFE supports the Preventing a Patronage System Act, H.R. 302, introduced by Reps. Gerry Connolly, D-VA, and Brian Fitzpatrick, R-PA, which would require future administrations to obtain the agreement of Congress to reclassify competitive service positions outside of

merit system principles. The bill would limit competitive service reclassifications to the five current excepted service schedules. In addition to eliminating Schedule F, President Biden overturned three other EOs from the previous administration aimed at weakening federal unions. These orders made it easier for agencies to circumvent merit systems principles, greatly restricted the use of official time and limited collective bargaining by streamlining the negotiation process. Agencies must review and rescind any actions taken to implement the three orders over the past three years. Biden also ordered the Office of Personnel Management (OPM) to develop recommendations to promote a $15 per hour minimum wage for federal employees. Any change would likely require congressional action. —BY SETH ICKES, GRASSROOTS ASSISTANT

FAIR Act Proposes a 3.2 Percent Pay Increase

n January, the Federal Adjustment of Income Rates (FAIR) Act, H.R. 392 was reintroduced, starting the conversation on federal pay raises for 2022. The bill would provide federal employees with a 3.2 percent average pay raise and would make progress toward closing the gap between public- and private-sector wages. Under the bill, the raise consists of a 2.2 percent acrossthe-board increase and an average 1 percent locality pay adjustment for most federal employees. The bill also includes

a 2.2 percent increase for prevailing rate employees. According to the most recent data from Federal Salary Council, federal employees make 23 percent less on average than their private-sector counterparts. In a statement, bill sponsor Rep. Gerry Connolly, D-VA, said, “The FAIR Act is a critical step towards recognizing federal employees’) contributions and providing fair and just compensation.” The House bill will have companion legislation introduced in the Senate by Sen. Brian Schatz, D-HI. Schatz said in a statement,

“After suffering through furloughs and pay freezes over the past few years, these hardworking public servants deserve a raise—and our bill will make sure they finally get one.” Visit NARFE’s Legislative Action Center at www.narfe. org and ask your Representative to cosponsor this legislation. Passage of this bill would help decrease the pay gap between public- and private-sector jobs and enable the federal government to recruit talented workers and retain its best employees. —BY ROSS APTER, POLITICAL ASSOCIATE NARFE MAGAZINE www.NARFE.org

Washington Watch LEGISLATIVE RESOURCES NARFE NewsLine – A weekly newsletter that goes out to NARFE members on Tuesdays and include weekly recaps of legislative news, compiled by NARFE’s advocacy and communications teams. LEGISLATIVE ACTION CENTER – A one-stop site to send a letter to Congress, and more, at www.narfe.org.

Equal COLA Act Reintroduced

id you know that retirees under the Federal Employees Retirement System (FERS) do not receive the same cost-of-living adjustments (COLAs) as retirees under the Civil Service Retirement System (CSRS) and Social Security do in some instances? Under current law, if the COLA is between 2 and 3 percent, FERS enrollees only receive a 2 percent increase, and if the COLA is 3 percent or more, FERS COLAs are reduced by 1 percent. Only if the COLA is 2 percent or less do FERS

retirees receive the same COLA as their CSRS counterparts. In January, Rep. Gerry Connolly, D-VA, reintroduced the Equal COLA Act, H.R. 304, to provide FERS retirees with full COLAs. Inadequate and inaccurate COLAs fail to sufficiently protect earned FERS annuities from inflation. COLAs should be based on the actual measure of consumer prices and not arbitrarily constrained to the detriment of retired public servants. Absent this legislation, FERS

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retirees will continue to see their annuities decrease in value year after year—which is exactly what COLAs are intended to prevent. FERS retirees are affected by inflation in the same way as all other retirees, and they deserve full protection to maintain their purchasing power. Visit NARFE’s Legislative Action Center at www.narfe.org to send a letter, make a phone call, or tweet at your legislator in support of the Equal COLA Act.

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NARFE MAGAZINE APRIL 2021

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NARFE’s CONGRESSIONAL DIRECTORY FOR THE 117 th CONGRESS (2021-2022)

CONGRESSIONAL DIRECTORY 117th Congress 2021-2022

Features: • Members of Congress by state delegation, with color photos, biographical data and congressional district maps. • Members’ contact information, including addresses, phone and fax numbers, website addresses, social media contacts, district offices and key staffers. • Complete listings of committees, subcommittees and leadership. • Contact information for the White House, Cabinet, Supreme Court and federal agencies.

Be a stronger advocate with NARFE’s Congressional Directory at your fingertips

Order your copy of the new CONGRESSIONAL DIRECTORY today! Name __________________________________________________________ Address ________________________________________________________ City_____________________________________ State _____ ZIP _________ Member ID# (as it appears on NARFE Magazine label) _____________________

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Please allow 3-4 weeks for delivery. Call NARFE’s Advocacy Department at 800-456-8410, option 3, to order by phone.

Washington Watch

NARFE BILL TRACKER

THE NARFE BILL TRACKER IS YOUR MONTHLY GUIDE TO LEGISLATION NARFE IS FOLLOWING. CHECK BACK EACH ISSUE FOR UPDATES. ISSUE

BILL NUMBER / NAME / SPONSOR

WHAT BILL WOULD DO

H.R. 695/S. 145: USPS Fairness Repeals the U.S. Postal Service’s preAct / Rep. Peter DeFazio, D-OR / funding requirement. Sen. Steve Daines, R-MT POSTAL REFORM

Cosponsors: H.R. 695: 199 (D) 31 (R) S. 145: 1 (D) 1 (R) H.R. 82: The Social Security Fairness Act / Rep. Rodney Davis, R-IL

GPO/WEP

Cosponsors: H.R. 304: 6 (D) 0 (R)

FEDERAL COMPENSATION

FEDERAL PERSONNEL POLICY

Provides Federal Employees Retirement Referred to the House System (FERS) retirees with the same Committee on Oversight annual cost-of-living adjustment (COLA) and Reform as Civil Service Retirement System (CSRS) retirees. Referred to the House Committee on Oversight and Reform (H.R. 51) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 51)

Provides federal employees with a 3.2 percent average pay raise in 2022.

Referred to the House Committee on Oversight and Reform

H.R. 302: Preventing a Patronage Require presidential administrations to obtain the agreement of Congress to System Act / Rep. Gerry reclassify competitive service positions Connolly, D-VA outside of merit system principles. Cosponsors: H.R. 302: 7 (D) 1 (R)

Referred to the House Committee on Oversight and Reform

Cosponsors: H.R. 51: 210 (D) 0 (R) S. 51: 38 (D) 0 (R) 1 (I)

H.R. 392: The Federal Adjustment of Income Rates (FAIR) Act / Rep. Gerry Connolly, D-VA Cosponsors: H.R. 392: 17 (D) 0 (R)

NARFE’s Position:

Referred to the House Committee on Ways and Means

Provides for the admission of the State of Washington, DC, into the Union.

H.R. 51/S. 51 Washington D.C. Admission Act / Del. Eleanor Holmes Norton. D-DC / Sen. Thomas Carper, D-DE DC STATEHOOD

Referred to the House Committee on Oversight and Reform (H.R. 695) / Referred to the Senate Committee on Homeland Security and Governmental Affairs (S. 145)

Cosponsors: H.R. 82: 29 (D) 18 (R) H.R. 304: The Equal COLA Act / Rep. Gerry Connolly, D-VA

FEDERAL ANNUITIES

Repeals both the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP).

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Questions & Answers

Q&A

THE FOLLOWING QUESTIONS & ANSWERS were compiled by NARFE’s Federal Benefits Institute experts. NARFE does not provide legal, financial planning or tax advice or assistance.

EMPLOYEES NECESSITY OF SURVIVOR BENEFIT ELECTION

When two federal employees who are married retire, is it necessary to leave each other a survivor’s benefit, even though each will be entitled to their own retirement?

The question to ask each other when making the election for a spousal survivor annuity is this: “If I die first, will the loss of my retirement income cause a financial hardship for you?” Since you don’t know for sure who will live longer, what’s important is to try to predict if there is a financial need for the continued income. Keep in mind that if both spouses were also receiving Social Security retirement benefits, the surviving spouse will generally receive the higher of the two Social Security benefits when one spouse passes away, which causes another drop in income for the surviving spouse. There are two features that make the spousal survivor annuity an exceptionally valuable federal benefit. First, the survivor’s annuity is payable for the life of the surviving spouse, regardless 16

NARFE MAGAZINE APRIL 2021

of whether your spouse outlives you by two years or 22 years. Second, the survivor’s benefit is adjusted annually for inflation. With an average rate of inflation of 3 percent per year, your retirement will double in 24 years.

FULL SURVIVOR BENEFITS

My wife and I have been married for 31 years, and we are both federal employees. I have Civil Service Retirement System (CSRS) coverage, and my wife is covered under the Federal Employees Retirement System (FERS). My pension will be a little over $70,000 per year, and I qualify for a small Social Security benefit. My wife’s retirement under FERS will be around $30,000, and she will have a Social Security retirement of around $25,000. We are very fortunate that we have both had

long federal careers and will soon be eligible to retire and reap the rewards of our retirement benefits. We have no former spouses with any claim to our benefits. My question is that when I go to the “final TDY in the sky,” will my wife be able to receive the full survivor benefit under my election at retirement? I was wondering if there is any reduction to this benefit since she will be receiving her own FERS retirement and Social Security retirement benefits.

Your wife will be entitled to receive the full amount of the CSRS survivor benefit if you were to predecease her unless she waives her right to the maximum survivor benefit election at the time of your retirement. The maximum CSRS spousal survivor benefit is equal to 55 percent of your unreduced CSRS retirement at the time of your death. Likewise, she is required to make the same election for you when she retires under FERS. The maximum spousal survivor

election under FERS provides 50 percent of the unreduced FERS retirement benefit. If your spouse predeceases you, then you may elect to have your annuity restored to the unreduced amount by notifying the Office of Personnel Management (OPM) and providing a copy of the death certificate. Your wife would be able to do the same if you predecease her. This is an important decision that is made at the time of retirement, as it provides some replacement income when the retiree passes away.

FEHB COVERAGE IN SURVIVOR BENEFIT

My husband is not a federal employee (or retiree), and he is covered under my Federal Employees Health Benefits (FEHB) enrollment. When I retire, am I required to provide him with a spousal survivor benefit, even if he agrees that he does not need the money? I am mostly concerned about him being able to continue coverage under FEHB as my surviving spouse.

The survivor benefit is critical to a nonfederal spouse for more than just providing replacement income should you predecease him. The election allows the surviving spouse the right to continue coverage under FEHB as long as he or she was covered on the date of your death. In your case, since your husband doesn’t need the income from your FERS retirement should you die first, you may elect a partial survivor benefit for him as long as he provides his notarized consent to this election. Under FERS, a partial spousal survivor election

will reduce your FERS benefit by 5 percent and provide your surviving spouse with 25 percent of your unreduced benefit at the time of your passing, as well as allow him to continue coverage under FEHB. If your spouse dies before you, then you may elect to have your annuity restored to the unreduced amount by notifying OPM and providing a copy of the death certificate.

UNUSED SICK LEAVE CREDIT

I began federal service on February 23, 1982, and I plan to retire on December 31, 2021. At the retirement seminars I attended several years ago, the presenter provided information on sick leave at the time of retirement. Now that I am so close to retiring, I want to make certain I don’t mess it up. Specifically, I’m looking for information on the number of months I will have credited towards my service and the number of odd days I will have left over in excess of full months. Can you help me understand how many full months will be credited to my service and how many “extra” sick leave days I will have?

Computing the exact number of years, months and days of service you will have on the date of your retirement is a little bit more complicated than it might seem. This computation involves projecting your sick leave balance to what you will have at retirement and then converting the hours of sick leave to years, months and days by converting a work year of 260 days to a calendar year that includes

weekends and holidays. That figure is then added to the total amount of years, months and days of creditable service you will have on the date of your separation for retirement. This calculation is best left to a retirement specialist who can first make sure that your service has been properly documented and is creditable in the computation of your CSRS or FERS benefit, and then use software or manual computing to ascertain the total years, months and “leftover” days of service you will have at retirement. Remember, if you change your retirement date, the final result will also change. There is a pamphlet available on crediting unused sick leave that includes a chart to help convert hours into months and days. Publication RI 83-8, “Credit for Unused Sick Leave Under the Civil Service Retirement System,” works for both CSRS and FERS calculations and is available at www.opm.gov. Remember that one single month of service (sick leave or actual service) is worth a relatively small amount in your retirement benefit. It is easy to compute the value of one month of additional service. For example, if you are covered under CSRS, the difference between 39 years and 10 months of service or 39 years and 11 months of service is 1/12 x 2 percent x your highthree average salary. If your highthree average salary is $75,000, for example, then one month of sick leave credit would add $125 / year to your CSRS annuity (1/12 x 2 percent x $75,000) or $10.42/month. Under FERS, the calculation is 1/12 x 1 percent (or 1.1 percent if you retire at age 62 or later with at least 20 NARFE MAGAZINE www.NARFE.org

Questions & Answers

years of creditable service) x your high-three average salary. The same month of sick leave credit would add $62.50 or $68.75/ year ($5.21 or $5.73/month) to your FERS annuity. Of course, if you’ve saved up 104 hours of sick leave each year for 39 years, potentially that could add almost two years of additional service to your retirement computation and would be a significant increase to your retirement.

RETIREES FIRST REQUIRED MINIMUM DISTRIBUTION FROM TSP

Do you have to take your first required minimum distribution (RMD) from your TSP account by December 31 of the year you turn 72?

Normally, you have to take RMDs from the TSP after you turn age 72 and are separated from federal service by the end of the year. However, you don’t have to take your first RMD until April 1 of the year after you turn 72. If you do not withdraw enough to meet the requirement during your first distribution calendar year, the TSP is required to disburse your first RMD to you by April 1 of the following year. For administrative purposes, the TSP will issue this RMD on March 1 or the last business day before March 1 of your second distribution calendar year. But be careful—if you delay the first withdrawal, you’ll also have to take your second RMD by December 31 of the same year. Because you pay taxes on both RMDs (minus any portion from nondeductible contributions), taking two RMDs in one year

NARFE MAGAZINE APRIL 2021

could bump you into a higher tax bracket. It could also have other ripple effects, such as making you subject to the Medicare high-income surcharge if your adjusted gross income reaches above $88,000 if you’re single, or $176,000 if married filing jointly. In the years that follow, you’ll have just one RMD, due by December 31. If you don’t make any withdrawals or if your withdrawals fall short of the required amount, the TSP will automatically send you the amount that’s still required in the month of December.

IMPACT OF RECENT LEGISLATION ON TSP WITHDRAWALS

Q A

How did the SECURE Act and CARES Act change how I have to make withdrawals from the TSP? The Setting Every Community Up for Retirement Enhancement (SECURE) Act raised the age for RMDs to 72, starting on January 1, 2020. It used to be 70½. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, RMDs were waived (canceled) for 2020. You do not have to receive two RMDs in 2021, even if you retired on December 31, 2020. According to the TSP, if 2020 would have been your first RMD year, the first RMD you need to take will be for your second RMD year (2021) and is due December 31, 2021. If you received an RMD from your TSP account in 2020, the TSP must report the income, so they sent you a Form 1099-R, even if you rolled the money back into your account or into another retirement account under

the terms of the CARES Act. Remember that not all reported income is taxable income. If you received an RMD that was eligible for rollover in 2020 and you repaid it or rolled it over by the deadline, it’s not taxable income. Please consult the IRS or a tax adviser for instructions and additional information on tax filing.

HEALTH CARE PREMIUMS FOR PUBLIC SAFETY OFFICERS

I retired as a federal law enforcement criminal investigator. Someone told me that I can deduct the cost of my health insurance from my taxable income. Is this true?

According to IRS Publication 721, if you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude distributions made directly from your retirement benefit to the insurance provider for health insurance or longterm care insurance premiums. You can exclude from income the smaller of the amount of the insurance premiums or $3,000. This election can only be made for amounts that would otherwise be included in your income. The amount excluded from your income can’t be used to claim a medical expense deduction.

ANNUAL LEAVE CALCULATION

I retired on December 31, 2020, and was able to work 80 hours during my last pay period since I work a compressed work schedule.

I was hoping to accrue my last leave accrual for leave period 26 of 2020. My agency says that I am not owed the leave for the final pay period because I retired before the pay period was over. My HR person referred me to the FAQ that is posted on OPM’s website that reads: Question: If someone is retiring in the middle of the pay period, does that person still accrue annual leave even if he only works for 40 hrs or less? Answer: No, leave is only accrued if you work the full pay period.

The OPM FAQ is correct. Working a partial pay period (40 hours instead of 80) will not earn prorated

leave accrual. However, if you completed 80 hours of work in 9 days, you did complete the pay period. According to the Code of Federal Regulations, the leave accrual rates for employees shall be directly proportional to the standard leave accrual rates for employees who accrue and use leave based on an 80-hour biweekly tour of duty.

NARFE AT YOUR SERVICE At NARFE Headquarters, experts are available to answer questions and assist in helping with a variety of benefit matters.

CALL NARFE AT

800-456-8410,

To obtain an answer to a federal benefits question, NARFE members should call 800-456-8410 and select option 2 for the Federal Benefits Institute; send the question by postal mail to NARFE Headquarters, ATTN: Federal Benefits Institute; or submit it by email to fedbenefits@narfe.org.

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2/12/20 9:51 AM

NARFE MAGAZINE www.NARFE.org

NARFE MAGAZINE APRIL 2021

BY TAMMY FLANAGAN

ince 1985, I’ve spent my career helping federal employees plan for retirement, but to

be honest, very little of that time has been dedicated to helping them decide where they are going to retire. I have talked with thousands of Feds over the years; many were planning to retire in place, but a large number were looking to try someplace new.

I was surprised to learn that the state with the largest population of both federal employees and federal retirees is California. Due to its high cost of living, California often does not make the “Best Places to Retire” lists, but it is very popular among federal retirees who have spent their careers and raised their families in the Golden State. NARFE MAGAZINE www.NARFE.org

Finding My Way Home We have all been shaped by our past to some degree, and that may influence our lifestyle in retirement as well as where we choose to live. I grew up in Monroeville, PA, and later moved to the Northern Virginia/Washington, DC metro area where I spent 35 years working with civil servants. After that, I relocated to my current home on the Gulf Coast of Florida where I continue my work, while my husband, Bryan, enjoys the early years of his retirement. Two instances from my past have influenced how I ended up living in Florida today. My dad came from a family of 12 brothers and sisters. My grandparents were Yugoslavian immigrants who came to America from AustriaHungary in the late 1800s. They lived through the Great Depression and lost a baby to the 1918 pandemic. When World War II started, my dad and his brothers went to fight, while their sisters took jobs supporting the war effort in the coal mining towns near Pittsburgh, PA. After the war, two of my uncles and my dad made a pact to move their young families to Edwards Air Force Base, a new and expanding facility located in California on the Mojave Desert, and work in the federal government. When the time came to pack, however, my dad and one of my uncles backed out, deciding that it was more important to stay in Pennsylvania, close to family. But my adventurous Uncle Steve, his wife and their 3-year-old son started a life in California—a move that would influence my life for many years to come. Aunt Helen and Uncle Steve showed me that a government career offers a good life. Even though they lived 3,000 miles away, they had the means to travel back east to their families by car, airplane, and, once, by train. I found their government careers fascinating, and I admired their lifestyle. On a few summer visits, we saw the sprawling dry lake beds on the desert and the impressive military facilities. We also noticed the respect the federal workers and military personnel on base showed my aunt and uncle. It’s no wonder that my parents later supported my decision to marry Bryan, who at that time had taken a job with the U.S. Secret Service in Washington, DC.

NARFE MAGAZINE APRIL 2021

Bryan’s father bought property in Florida in the 1960s, hoping to build his retirement home on the East Coast of the state. After retiring from military service, Dad Flanagan worked a second career in the Pittsburgh area, but, sadly, before he had a chance to fully retire, James Flanagan passed away at age 64. Bryan and I spent our honeymoon and almost every summer vacation of our married life on a beach, so it was no surprise that we were influenced by the desire of my in-laws to head south for retirement. Our search for a retirement location took us from the beaches of North Carolina to the East and West Coasts of Florida. After several exploratory trips and a few years of planning, we decided that if it was warm weather we were looking for, then Florida offered year-round sunshine with little chance of snow and frost. When Bryan retired in 2015, we settled on the Gulf Coast of Florida for a number of reasons: • The beaches are beautiful. • The weather is sunny year-round. (Yes, the summers are very hot and humid, but the mild winters are worth the sacrifice.) • The communities on the Suncoast offered beautiful, planned neighborhoods, and they had some of the feel of the Northern Virginia neighborhoods we loved. • The convenience of a growing airport in Sarasota, along with the completion of Interstate 75 and the proximity to Tampa and St. Petersburg, made the Suncoast accessible by plane and by car. • Sarasota is full of character and charm. There is lots to do, making it a great destination when family and friends visit. And Tampa and Orlando are only a short drive away. • Florida has no state income tax, making our retirement dollars stretch farther. For more information on state income taxes and how they affect federal annuities, see the state taxes article on p. 28. • Medical care is very good and hospitals here are top rated, so as we age, we have plenty of good health care options nearby. • Our community has great schools, as well as higher education that attracts all age groups, which we enjoy living among.

• Before making the move, we visited others from our circle of family and friends who had also decided to make the Suncoast of Florida their retirement home. • Technology allowed me to continue my Fedfocused career, even though I was relocating almost 1,000 miles away from the epicenter of our federal government.

Residence

Total employee and survivor annuitants

Navigating a Wealth of Options So, where do federal employees live when they retire? According to statistical abstracts from fiscal year 2019 published by the Office of Personnel Management (OPM), here are the numbers—some may surprise you!

Total employee and survivor annuitants

Residence

1. California

213,684

29. New Mexico

29,500

2. Florida

189,758

30. Wisconsin

28,895

3. Texas

181,348

31. Louisiana

28,779

4. Maryland

168,092

32. Nevada

27,006

5. Virginia

148,253

33. Mississippi

26,550

6. Pennsylvania

110,334

34. Kansas

25,514

7. New York

95,165

35. Arkansas

25,463

8. Georgia

92,124

36. Hawaii

24,960

9. North Carolina

83,519

37. Foreign countries and territories

22,345

38. Iowa

21,667

39. West Virginia

19,260

40. Idaho

16,898

41. Connecticut

14,923

42. Maine

14,501

43. Montana

14,346

44. Nebraska

13,885

45. New Hampshire

13,413

46. Delaware

11,931

47. Puerto Rico

11,787

48. South Dakota

11,427

10. Ohio

77,584

11. Washington

71,940

12. Illinois

71,180

13. Arizona

62,292

14. Alabama

59,820

15. Missouri

55,957

16. Colorado

53,216

17. New Jersey

52,619

18. Tennessee

50,612

19. South Carolina

48,396

20. Michigan

48,117

21. Oklahoma

47,967

22. District of Columbia

43,819

23. Massachusetts

49. Alaska

8,779

41,987

50. Rhode Island

7,654

24. Indiana

38,951

51. North Dakota

6,873

25. Oregon

35,456

52. Wyoming

6,283

26. Utah

35,099

53. Vermont

4,826

27. Kentucky

34,823

54. Guam

2,451

28. Minnesota

31,542

55. Virgin Islands

603 NARFE MAGAZINE www.NARFE.org

Compare this to the top 10 retirement locations according to several recent surveys:

Kiplinger Magazine 2019 Survey

Forbes Magazine The Best Places to Retire in 2020

U.S. News and World Report Best Places Retirement Living to Retire in the U.S. 4 Best Places to in 2020-21 Retire

Ideal Living 10 Best Places to Live and Retire in 2020

Huntsville, AL

Asheville, NC

Sarasota, FL

Bethel Park, PA

Naples, FL

Anchorage, AK

Augusta, GA

Ft. Myers, FL

Little Elm, TX

Asheville, NC

Phoenix, AZ

Boise, ID

Port St. Lucie, FL

Independence, KY

Nashville, TN

Fayetteville, AR

Columbus, OH

Naples, FL

Iowa City, IA

Milford, DE

Carlsbad, CA

Dallas, TX

Lancaster, PA

Beaufort, SC

Denver, CO

Des Moines, IA

Ocala, FL

Phoenix, AZ

Middletown, CT

Evansville, IN

Ann Arbor, MI

Lancaster, PA

Milford, DE

Fargo, ND

Asheville, NC

Dallas-Fort Worth, TX

Cape Coral, FL

Green Valley, AZ

Miami, FL

Fort Myers, FL

Augusta, GA

Jacksonville, FL

Melbourne, FL

Williamsburg, VA

It’s interesting that five different cities can all be named the No. 1 retirement spot, depending on which “Best Places to Retire” list you happen to be reading. It’s important to take a closer look at the data used to create each list. While a town can show up on a top 10 list, ultimately your own preferences are the most important criteria when deciding the best location for you to retire. It might make sense to spend extended vacation time in your chosen destination to get a feel for the people, environment and lifestyle. According to many relocation guides, this is especially true if you are thinking about retiring overseas, where new languages, laws and customs can overwhelm even the bravest retirees. My good friend Mike Causey often tells a story about a friend of his who retired from a Virginiabased federal job to move to a small town out west on the Columbia River. Was the retiree an avid outdoorsman, hunter or fisherman? Nope. He did it for tax reasons. He lives in Washington state, which has no personal income tax, and shops across the river in Oregon, which has no sales tax. Was it worth it? He says yes. Another common piece of advice is to consider renting before buying. There was a couple I knew 24

NARFE MAGAZINE APRIL 2021

who loved Savannah, GA, and considered the city for their retirement. Wisely, they decided to lease an apartment in downtown Savannah for a year before building or buying a new home in the suburbs. Turns out the Deep South did not suit their Philadelphia get-it-done-now temperament. They instead joined the ranks of “halfback retirees,” people who head to the Deep South, find that it’s not the best fit, and move halfway back toward their former home up north.

WHILE A TOWN CAN SHOW UP ON A TOP 10 LIST, ULTIMATELY YOUR OWN PREFERENCES ARE THE MOST IMPORTANT CRITERIA WHEN DECIDING THE BEST LOCATION FOR YOU TO RETIRE. IT MIGHT MAKE SENSE TO SPEND EXTENDED VACATION TIME IN YOUR CHOSEN DESTINATION TO GET A FEEL FOR THE PEOPLE, ENVIRONMENT AND LIFESTYLE.

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To take advantage of this great offer, call 888-847-6150 or visit www.blue365deals.com/FEP/offers/ahb-hearing-aid-discounts-s The Service Benefit Plan will pay a hearing aid benefit for Standard and Basic Option Members up to $2,500 total every 3 calendar years for adults age 22 and over, and up to $2,500 total per calendar year for members up to age 22. Do not rely on this communication piece alone for complete benefit information. All benefits are subject to the definitions, limitations, and exclusions in the Blue Cross and Blue Shield Service Benefit Plan brochure. The Blue365® Discount Program offers access to savings on items that you may purchase directly from independent vendors, which may be different from items covered under the Service Benefit Plan or any other applicable federal healthcare program. For hearing aids, acupuncture, chiropractic and vision services, you must exhaust your Service Benefit Plan benefits first before accessing the savings of the Blue365® Discount Program. To find out what is covered under your policy, contact the customer service number on the back of your member ID card. The products and services described herein are neither offered nor guaranteed under any local Blue company’s contract with the Medicare program. These items are not subject to the Medicare appeal process. Any disputes regarding these products and services are not subject to the Disputed Claims process. Blue Cross and Blue Shield Association (BCBSA) may receive payments from Blue365 vendors. Neither the Service Benefit Plan, nor any local Blue company recommends, endorses, warrants or guarantees any specific Blue365 vendor or item. The Service Benefit Plan reserves the right to change, modify, or terminate any item and vendors made available through Blue365, at any time.

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Here are some of the criteria that put one city in the top 10 over others. As you read through this list, try to figure out what you are looking for—or what you are looking to leave behind. • Weather ◊ Do you enjoy the four seasons? ◊ Are you trying to avoid cold weather and snow? ◊ Do you want to be near the ocean or the mountains? • Taxes ◊ Are Social Security and other retirement income subject to tax? ◊ Are there tax exemptions for older residents? ◊ What are the state’s overall income, property and sales taxes? • Cost of living ◊ Are you on a limited budget? ◊ Are you moving from a high-cost living area or a low-cost one? ◊ Will it make more sense to rent rather than buy? • Recreation ◊ What social opportunities will you have in your new location? ◊ Are there cultural attractions and historic sites to visit? ◊ Do you want to learn something new? ◊ Are you an outdoors person? • Getting around ◊ Will it be easy for friends and family to visit you? ◊ Is it important to have public transportation available? ◊ Do you want to be able to walk to local shops and restaurants? • Safety and well-being ◊ What is the crime rate of your new location? ◊ Are you OK with being physically distant from friends and family? ◊ Are you looking forward to making new friends? • Health care ◊ What kind of healthy opportunities are available (e.g., hiking trails, senior sports clubs)? ◊ Are you planning for the potential need for long-term care? 26

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◊ Have you considered accessibility as you age? Figuring out your preferences, your necessities and your budget will lead to finding the best place to retire for you, wherever that is. —TAMMY FLANAGAN IS MANAGER OF TAMMY FLANAGAN LLC AND SENIOR BENEFITS DIRECTOR FOR THE NATIONAL INSTITUTE OF TRANSITION PLANNING. SHE IS A REGULAR NARFE FEDERAL BENEFITS INSTITUTE WEBINAR PRESENTER, CONDUCTS TRAINING AT FEDERAL AGENCIES, WRITES A WEEKLY COLUMN FOR GOVERNMENT EXECUTIVE AND IS A FREQUENT GUEST ON FEDERAL NEWS NETWORK PROGRAMS.

What about relocating to a new country? When thinking about retiring overseas, there are obvious considerations when it comes to language, culture and housing. In addition, there are some not-soobvious issues to mull over, such as those related to infrastructure, taxes, health care and accessibility to the United States. An excellent guide to retiring overseas is How to Retire Overseas: Everything You Need to Know to Live Well (for Less) Abroad, by Kathleen Peddicord. Peddicord has traveled to more than 70 countries and has written about living overseas for more than 30 years; she is considered one of the world’s foremost authorities on these subjects. According to Peddicord, the top retirement havens in the world include Belize, Colombia, Dominican Republic, Ecuador, France, Italy, Malaysia, Mexico, Nicaragua, Panama, Portugal, Thailand and Uruguay.

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STATE TAX TREATMENT

States With No Personal Income Taxes ALASKA FLORIDA NEVADA

NEW HAMPSHIRE1 SOUTH DAKOTA TENNESSEE2

New Hampshire: Taxes interest/dividend income at 5% if it exceeds $2,400 (single) or $4,800 (couple). $1,200 exemption for residents age 65+ (see p.31).

TEXAS WASHINGTON WYOMING

2 Tennessee: Taxes certain interest/dividend income at 1% if it exceeds $1,250 (single) or $2,500 (couple) for 2020 tax year; tax is repealed starting in 2021 tax year. Individuals age 65+ have additional means-based exemption (see p. 33).

States Exempting Total Amount of Civil Service Annuities* ALABAMA HAWAII ILLINOIS

KANSAS LOUISIANA MASSACHUSETTS

MISSISSIPPI NEW YORK PENNSYLVANIA

* In addition, the five states listed below exempt certain federal civil service annuities from taxation. Some exemptions depend on the taxpayer’s age or dates of government service. KENTUCKY: Amount attributable to service prior to January 1, 1998, is exempt. See p. 30 for taxation of annuities attributable to service on or after January 1, 1998. MICHIGAN: Full exemption only applicable to taxpayers born before 1946. See p. 31 for taxation of federal (and other) pension income for taxpayers born in 1946 and later. NORTH CAROLINA: Annuities not taxed if the individual had five years of federal government service as of August 12, 28

NARFE MAGAZINE APRIL 2021

1989. If otherwise, see p. 32. OKLAHOMA: CSRS annuities excluded from taxation. Taxpayers with annuities with both FERS and CSRS components may exclude the portion attributable to CSRS service. OREGON: Annuities not taxed if individual retired before October 1, 1991. Those who retired after October 1, 1991, are taxed only on that portion of the annuity attributable to federal government service after October 1, 1991.

2020

TAX YEAR

FEDERAL ANNUITIES Other Exemptions

ALABAMA: SS, federal retirement, military retirement and state pension income are exempt. Income from all defined-benefit pension plans is exempt. Income from distributions from accounts like IRAs and 401(k)s are partially taxable. ARIZONA: SS is exempt. Up to $2,500 total of civil service and Arizona state and local government pensions are exempt. Up to $3,500 is exempt if the taxpayer receives benefits, annuities or pension as retired or retainer pay of the uniformed services. Additional personal exemption for all residents age 65+. ARKANSAS: SS and military retirement benefits are exempt. Up to $6,000 is exempt from an employment-related pension plan. IRA distributions can be included as

Key to Abbreviations AGI=Adjusted Gross Income CSRS=Civil Service Retirement System FERS=Federal Employees Retirement System HH=Head of Household IRA=Individual Retirement Account MFJ=Married Filing Jointly MFS=Married Filing Separately QW=Qualified Widow(er) RR=Railroad Retirement* SS=Social Security *Federal law does not permit states to tax Railroad Retirement income. Exemption is not noted in roundup except where it affects provisions.

The latest edition of the NARFE state tax roundup is here just in time for tax filing, as well as for planning purposes. The following pages contain the most up-to-date information on each state’s tax situation. Use this guide to learn if there have been any changes to the way your state treats your federal annuity or retirement income. The NARFE team combed through every state’s tax code to provide a comprehensive guide in the pages that follow, so give it a good, thorough read. And don’t forget to share the information with others so they don’t miss out on potential savings. This roundup of state tax treatment of federal annuities and other tax information is presented for informational purposes only and does not constitute professional tax advice. NARFE has taken all reasonable efforts to ensure that the information contained in this roundup is accurate at the time of publication; however, NARFE cannot guarantee the completeness or accuracy of this information and is not responsible for any errors or omissions. Please consult a tax professional for advice in preparing tax returns. The information also is available on the NARFE website, www.narfe.org.

part of the exemption if the taxpayer is age 59+. Out of state government pensions also qualify for the exemption.

MFS) or $100,000 (MFJ, HH), other pension and annuity income is subject to a percentage deduction (28%). Military retirement pay is exempt.

CALIFORNIA: SS is exempt. Additional $122 personal exemption for residents age 65+. All private, public and military pensions are taxed.

DELAWARE: SS is exempt. Taxpayers age 60+ may exclude $12,500 of investment and qualified pension income, as well as IRAs and 401(k)s, and qualify for an additional tax credit of $110. Taxpayers under age 60 may exclude $2,000. Taxpayers age 65+ are entitled to an additional standard deduction of $2,500 (if not itemizing). Single or MFS taxpayers age 60+, or totally disabled, may exclude $2,000 if earned income is less than $2,500 and AGI is $10,000 or less. If MFJ and both spouses are age 60+, or are totally disabled, they may exclude $4,000 if earned income is less than $5,000 and AGI is $20,000 or less.

COLORADO: SS income that is not taxed by the federal government is exempt. There is a $24,000 pension/ annuity exemption for all taxpayers age 65+, $20,000 pension/annuity exemption for all taxpayers between ages 55 and 64. The same exemption applies to SS and other qualifying retirement income (including federal civil service annuities, military retirement and all out-of-state pensions). CONNECTICUT: SS is exempt if federal AGI is below $75,000 for those single or MFS and AGI of $100,000 or less if MFJ. For those with an AGI below $75,000 (single,

DISTRICT OF COLUMBIA: SS is exempt. For taxpayers age 62+, DC and federal government survivor benefits are exempt. Other retirement income is not exempt. State government and public pensions NARFE MAGAZINE www.NARFE.org

are taxed. For those born before Jan. 2, 1956, or are blind, standard deductions increase by $1,300 for MFJ/MFS/QW and $1,650 for S/HH. GEORGIA: SS is exempt. Taxpayers who are age 62-64, or permanently and totally disabled regardless of age, may exclude $35,000 of retirement income. For taxpayers age 65+, the retirement income tax exclusion is $65,000. Retirement income includes income from pensions and annuities, interest income, dividend income, net income from rental property, capital gains income and income from royalties. Up to $4,000 of the maximum allowable exclusion may be earned income. HAWAII: SS is exempt. Federal retirement, military retirement, state or county retirement system pension income, and distributions from exclusively employer-funded pensions are exempt. and 401(k) distributions are treated as they are for federal taxes. Distributions to employer funded pensions to which an employee also contributed are partially taxed. Additional personal exemption of $1,144 per person age 65+. IDAHO: SS is exempt. Retirement benefits deduction available for CSRS annuitants who established CSRS eligibility prior to 1984 and are age 65+, or 62+ and disabled, in the amount of $36,132 (if single) or $54,198 (if MFJ) minus SS and RR received. Deduction includes workers under the Foreign Service Retirement and Disability System (FSRDS). Retirement benefits deduction also available for military retirees. Persons using MFS status are not eligible for the retirement benefits deduction. Extra standard deduction for persons age 65+. 30

NARFE MAGAZINE APRIL 2021

ILLINOIS: SS and income from most qualified employee retirement plans are exempt, including military pensions, governement retirement plans, military pensions and employment benefits plans like 401(k)s and IRAs. Extra personal exemption for persons age 65+. INDIANA: SS is exempt. Taxpayers may exclude as much as $6,250 of military retirement income, plus 50% of the amount that exceeds $6,250. Taxpayers age 62+ may deduct up to $16,000 from a federal civil service annuity minus the total amount of any SS or RR benefits. Taxpayers age 65+ can take additional personal exemption of $1,000. An additional personal exemption of $500 can be taken by residents age 65+ with a federal AGI that is less than $40,000. IOWA: SS and military retirement benefits are exempt. Taxpayers who are age 55+ or are disabled may exclude up to $6,000 (S, HH, QW) or $12,000 (MFJ or MFS) of pension or annuity income (including civil service annuities), self-employed retirement plan income, deferred compensation, IRA distribution or other retirement plan benefit income. Additional $40 personal exemption credit for those age 65+. KANSAS: SS is exempt if federal AGI is $75,000 or less. Federal, military and in-state/local pensions are exempt. For those age 65+ and/ or blind, an additional deductions of up to $10,300 are available; amount is dependent on tax filing status and whether the resident and/or spouse is blind. KENTUCKY: SS is exempt. Federal civilian and military retirement annuities attributable to service prior to Jan. 1, 1998, are excluded.

Annuities attributable to service after Jan. 1, 1998, are included as pension income, of which taxpayers may exclude up to $31,110. An additional credit of $40 for each individual age 65+. LOUISIANA: SS is exempt. Federal retirement annuities are exempt. In addition, persons age 65+ may exclude up to $6,000 of annual retirement income from their taxable income if single, $12,000 if MFJ and both are receiving retirement income. If only one spouse has retirement income, the exclusion is limited to $6,000. MAINE: SS and military retirement benefits are exempt. The taxpayer and spouse may each deduct from federal AGI $10,000 of eligible pension income. MARYLAND: SS is exempt. If age 65+ or totally disabled, you may exclude up to $33,100 in pension income, under certain conditions. Additional $1,000 exemption for residents who are blind or age 65+. If a dependent over 65 is claimed, you can also receive an extra exemption of up to $3,200. Military retirement subtraction up to $15,000 if 55+; $5,000 for those under age 55. To qualify for this subtraction, you must have been a member of an active or reserve component of the U.S. military, an active duty member of the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, the Coast and Geodetic Survey, or a member of the Maryland National Guard, or the member’s surviving spouse or ex-spouse. MASSACHUSETTS: SS, federal civil service and military pensions are exempt. Tax reciprocity with local/state

2020

TAX YEAR

governments that do not tax pension income from Massachusetts public employees. Additional exemption of $700 for each individual age 65+. MICHIGAN: SS and military pensions are exempt. Other pension and retirement benefits are taxed differently depending on the age of the taxpayer. Federal, state and local pensions are exempt for individuals born before 1946, as are private pension and retirement benefits up to $53,759 if filing single or MFS, or $107,517 if MFJ. Taxpayers born after 1954 cannot deduct retirement income. However, once taxpayers reach 67 years of age, they can take a standard deduction of $20,000 (S) or $40,000 (MFJ) against all income, subject to conditions that depend on whether they were born before or after 1952. Additional deductions exist for SS exempt employment based on age and retirement date. MINNESOTA: Certain types of military pensions or other military retirement pay may be subtracted from taxable income. To claim this subtraction, the qualifying income must be included in federal adjusted gross income. Those who are MFJ cam deduct up to $5,240 in Social Security benefits from their state income. Taxpayers 65+ and those with a permanent total disability may be eligible for subtraction, based on income. Additionally, interest received from a federal government source may be eligible for subtraction. MISSISSIPPI: SS and retirement income from federal, state and private retirement systems are exempt, along with qualified retirement income. Additional exemption of $1,500 for residents age 65+.

MISSOURI: Military retirement income exempt in cases of disability as a result of military service. Taxpayers with AGI under $85,000 (single, HH, MFS, QW) or $100,000 (MFJ) may exempt the greater of $6,000 or 100 percent of any federal, state or local pension income, up to a maximum of $39,014 per taxpayer. Taxpayers with AGI exceeding the limitation may qualify for a partial exemption. Taxpayers with AGI over these limits may be eligible for a partial exemption. Taxpayers age 62+ or disabled with an AGI under $85,000 (single, HH, MFS, QW) or $100,000 (MFJ) may exempt 100 percent of the taxable amount of SS or SS disability benefits. Taxpayers with AGI exceeding the limitation may qualify for a partial exemption. MONTANA: Additional exemptions if age 65+ and/or blind. Taxpayers age 65+ may exempt $800 ($1,600 if MFJ) of interest income reported in Montana AGI. You may exempt up to $4,370 of pension income per taxpayer, however your exemption is reduced by $2 for every $1 your AGI exceeds $36,420. The instructions note that you are more likely to receive the full exemption if MFS.

NEBRASKA: Public and private pension income is fully taxed. Taxpayers with AGI less than or equal to $59,100 MFJ or $44,460 for all other returns may deduct SS income. Military retirees may make a onetime election within two calendar years after the date of their retirement from the military. Military retirees can choose to exclude 40 percent of their military retirement benefit income for seven consecutive taxable years or can exclude 15 percent of military retirement benefit income for all taxable years beginning with the year the retiree turns 67.

NEW HAMPSHIRE: SS is exempt. A 5 percent tax is applied only to interest and dividend income exceeding $2,400 ($4,800 for joint filers). Residents age 65+—as well as those of any age who are blind, and those under 65 who are disabled and unable to work— qualify for an additional $1,200 exemption for taxable dividends and interest.

NEW JERSEY: SS and military pensions are exempt. Taxpayers age 62+ may exclude all or part of their taxable pensions, annuities and IRA withdrawals if their gross income for the entire year before subtracting any pension exclusion does not exceed $100,000. The maximum amount excluded depends on filing status. For tax year 2020, MFJ can exclude up to $100,000; S, HH, or QW, can exclude up to $75,000; and MFS, can exclude up to $50,000. Under certain conditions, additional amounts from retirement plans may be eligible for special exclusion if you (and your spouse if MFJ) will never be able to receive SS or railroad benefits because your employer did not participate in either program. You can claim $6,000 if MFJ, or $3,000 if S/MFS. Additional $1,000 personal exemption for residents age 65+ or blind. NEW MEXICO: Retirement benefits are taxed. Taxpayers age 65+ with whose AGI s less than $28,500 (S), $51,000 (MFJ, HH, QW) or $25,500 (MFS) qualify for a deduction of $8,000 . Taxpayers under 65 can claim an exemption of $2,500 if AGI is less than $36,667 (S) or $55,000 if MFJ. If age 100+, all income exempt from state income tax if centenarian is single or spouse is also 100+ and no other dependents can be claimed. NARFE MAGAZINE www.NARFE.org

NEW YORK: SS and state, local and federal pensions, including military and civil service, are exempt. An additional pension and annuity income exclusion of up to $20,000 is available to persons age 59½+. Outof-state government pensions can be deducted as part of a $20,000 exemption. NORTH CAROLINA: SS is exempt. Under the Bailey Settlement (Bailey vs. North Carolina), federal retirement benefits and military benefits are exempt only for those who had five or more years of creditable service as of August 12, 1989.

NORTH DAKOTA: SS exempt if AGI is (S) $50,000 or less or (MFJ) $100,000 or less. Military retirement benefits are exempt. All other retirement income is fully taxed. OHIO: SS and military pensions are exempt. General retirement income credit available starting at $25 if qualifying retirement income is at least $501; the credit tops out at $200 if qualifying retirement income is $8,001 or more. Residents age 65+ are entitled to a $50 tax credit per return. Taxpayers who served in the military and receive a federal civil service retirement pension are

eligible for a limited deduction if any portion of their federal retirement pay is based on credit for their military service. These retirees can deduct the percentage (in terms of years of service) of the amount of their federal retirement pay that is attributable to their military service. OKLAHOMA: SS is exempt. Each individual may exclude 100 percent of retirement benefits received from CSRS, including survivor benefits, paid in lieu of SS to the extent that these benefits are included in the federal AGI. Retirement benefits paid under FERS do not qualify

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NARFE MAGAZINE APRIL 2021

2020

TAX YEAR for this exclusion. However, for retirement benefits containing both a FERS and a CSRS component, the CSRS component will qualify for the exclusion. Individuals may exclude their FERS retirement benefits or other qualifying retirement income up to $10,000. Individuals may exclude the greater of 75 percent of their military retirement benefits or $10,000. Additional personal exemption of $1,000 for age 65+ if federal AGI is $15,000 or less (single), $25,000 or less (MFJ), $12,500 or less (MFS), or $19,000 or less (HH). OREGON: SS is exempt. Federal pension income of those individuals who retired before Oct. 1, 1991, are not taxed. Those who retired after Oct. 1, 1991, are taxed only on that portion of the annuity attributable to government service after Oct. 1, 1991. TSP withdrawals made during retirement are eligible for federal pension income subtraction based on dates of service. If the taxpayer moves money from a TSP to another type of account, the account loses its character and future withdrawals would not be eligible for subtraction from taxable income. Taxpayers age 62+ may qualify for retirement income credit if household income is below $22,500 (or $45,000 if MFJ). Additional standard deduction if age 65+ of $1,200 (single, HH), $1,000 each spouse age 65+ (MFJ, MFS and QW). PENNSYLVANIA: SS, federal civil service retirement benefits, military retirement benefits and employer-sponsored retirement plan benefits are exempt. Distributions from a 401(k) plan, IRA or Thrift Savings Plan are exempt for retirees 59½+.

RHODE ISLAND: SS is only exempt for MFJ with federal AGI of $107,950 or less; $86,350 or less for single taxpayers. Those age 65+ may only exempt up to $15,000 of qualified pension or retirement income if they have a federal AGI of $105,850 or less (MFJ) or $84,700 or less (single).

SOUTH CAROLINA: : SS is exempt. Those 65+ may deduct $10,000 of qualified retirement income. Those under age 65 may deduct $3,000 of other qualified retirement income (including federal retirement plans). All individuals age 65+ are entitled to a $15,000 (single) or $30,000 (MFJ) senior deduction from income, reduced by any deduction claimed for qualified retirement income. Military retirees under age 65 may deduct up to $17,500 of military retirement income. TENNESSEE: SS is exempt. Tax only applies to certain interest and dividend income, not wages, salary or earnings from federally recognized retirement accounts. An exemption of $1,250 ($2,500 if MFJ) is allowed against total taxable interest. Anyone age 65+ is exempt if total annual income from all sources is $37,000 or less ($68,000 or less for MFJ); those age 100+ are exempt regardless of income. Note: tax will be fully repealed in tax year 2021. UTAH: Taxpayers born on or before Dec. 31, 1952, may be entitled to a retirement credit of up to $450 ($900 MFJ). The credit is phased out at 2.5 cents per dollar of modified AGI over $16,000 (MFS), $25,000 (single) and $32,000 (MFJ, HH). VERMONT: SS only exempt for single filers making less than $45,000 a year ($60,000 MFJ);

partially exempt with income up to $55,000 ($70,000 MFJ). With the exception of Railroad Retirement beneits, pensions and retirement income are fully taxed. Taxpayers 65+ eligible for additional deduction of $1,050. VIRGINIA: SS is exempt. Taxpayers age 65+ may claim an age deduction: Those born on or before Jan. 1, 1939, may claim an age deduction of $12,000. Those born between Jan. 2, 1939, and Jan. 1, 1955, will have the $12,000 deduction reduced by $1 for every $1 that federal AGI exceeds $50,000 (single) or $75,000 (MFJ, MFS). Additional personal exemption of $800 if age 65+.

WEST VIRGINIA: Residents can exempt $2,000 of civil and state pensions. Military retirement income and federal law enforcement income is exempt. Taxpayers age 65+ may exclude the first $8,000 (S) or $16,000 (MFJ) of remaining nonexempt income. WISCONSIN: SS and military retirement benefits are exempt, as is retirement pay related to service with the Coast Guard or the respective commissioned corps of the National Oceanic and Atmospheric Administration or the Public Health Service. CSRS/FERS pay is exempt if the individual’s account was established prior to 1964 or if the individual is receiving payments from the system as a beneficiary of such an account. If age 65+, may exempt up to $5,000 of retirement income if federal AGI is less than $15,000 (S, HH) or $30,000 (MFJ or MFS). Personal exemption of $700 and additional exemption of $250 if age 65+.

NARFE MAGAZINE www.NARFE.org

NARFE MAGAZINE APRIL 2021

The Uncertain Future of USPS By David Tobenkin

Addressing the financial and operational challenges of the U.S. Postal Service (USPS) has bedeviled Washington lawmakers for more than a decade. The USPS is one of the nation’s oldest, largest and most iconic civilian federal agencies, but one that has long run in the red. Many now wonder whether a Biden administration that has expressed interest in reform will advance possible fundamental fixes to the agency before it runs out of money.

NARFE MAGAZINE www.NARFE.org

“Without legislative and regulatory reforms, our financial picture will continue to worsen to the point where we will no longer be able to provide current levels of service.” Former Postmaster General Megan Brennan

At issue is the scope of, and funding for, the USPS' ongoing operations and retirement health care system, as well as deeper questions about the agency’s proper role in an era of email communication and hypercompetitive private mail and package delivery services. “Despite the Postal Service’s many achievements, our efforts have not been enough—and cannot be enough—to restore the Postal Service to financial health, absent needed reforms,” said former Postmaster General Megan Brennan as part of her testimony in a 2019 House of Representatives Oversight and Reform Committee hearing on USPS reform. “While we continue to work towards a sustainable future, without legislative and regulatory reforms, our financial picture will continue to worsen to the point where we will no longer be able to provide current levels of service.”

An Agency With Impact

The Postal Service is a standout among federal agencies. It is among the oldest of federal agencies, with roots extending to Benjamin Franklin, the nation’s first postmaster general, and to explicit

USPS Revenue Losses FY18

FY20

-10

$ Billions

-5

-$3.9B

-$9.2B Source: USPS

NARFE MAGAZINE APRIL 2021

authorization in the U.S. Constitution for a postal agency. It is one of the largest federal agencies, with 495,941 full-time and 148,092 noncareer employees as of September 30, 2020, as well as roughly 558,000 retired postal workers. It is perhaps the only federal agency that provides a near-daily service to most Americans, with more than 161 million delivery points in 2020. In addition to its monopoly on the delivery of letters, USPS also operates a package delivery service that gives private competitors like FedEx and UPS a run for their money. The agency has also made a significant impact on employment and the economy in rural and minority communities.

The Prefunding Mandate

Despite its size, reach and importance, USPS has suffered heavy losses over the past 13 years, with net losses accelerating from $3.9 billion in fiscal year 2018 (FY18) to $9.2 billion in FY20. Notably, taxpayers are not on the hook for these losses: USPS is a self-funding agency that pays for operations entirely through the sale of postal products and services; it does not receive tax revenue to support its business. The Postal Service is also heavily indebted. At the end of FY19, USPS’ unfunded liabilities and debt totaled approximately $161 billion, according to a May 2020 Government Accountability Office report. A major element of the agency’s financial challenges is an extraordinary statutory requirement that it fully fund its retirees’ retirement health benefits. A 2006 USPS reform law, the Postal Accountability and Enhancement Act (PAEA) of 2006, mandated that USPS prefund its share of retirement health benefits for its retirees, including annual prefunding payments by USPS into a Retiree Health Benefits Fund (RHBF) over a 10-year budget window from fiscal years 2007 through 2016. The RHBF pays most of the health benefits costs associated with approximately 500,000 postal retirees. This unusual requirement—no other federal agency or private-sector company fully prefunds its retiree health benefits—was designed to be an accounting fix for another budget issue in

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the legislation. The agency has not made many of the required prefunding payments, has defaulted on mandatory health and retirement payments even after the 10-year budget window closed, and the liability remains on the balance sheet. Many parties, including NARFE, support reducing or eliminating the prefunding mandate, as well as restructuring payments for the Postal Service’s retiree health care prefunding liability. However, some previous postal reform bills have proposed reducing the agency’s liability by requiring current and future USPS retirees to enroll in Medicare Part B (physician services) or else forfeit their Federal Employees Health Benefits (FEHB) program coverage. NARFE has opposed such elements on two basic grounds, notes Jessica Klement, NARFE staff vice president of policy and programs: First, it would change the bargain regarding health benefits for In the Coronavirus Aid, USPS retirees after Relief and Economic they have retired, Security Act (CARES) increasing their Act that was signed costs and setting a into law in March 2020, dangerous precedent Congress provided a for post-retirement benefits changes for all $10 billion emergency federal retirees; and, loan to USPS, which second, it removes the was later converted to choice postal retirees a grant in subsequent have with regard to COVID relief legislation. their health insurance coverage. In his candidate statement to NARFE last summer, nowPresident Joseph R. Biden committed to repealing the prefunding mandate and to not imposing solutions that increase costs for current retirees. Bipartisan congressional support for postal reform is strong. Last year, in the 116th Congress, the House passed the USPS Fairness Act, H.R. 2382, by a vote of 309-106, but it never received a vote in the Senate. The bill would have eliminated the USPS requirement to prefund its future retiree health benefits. Legislation introduced last year calling for a $75 billion bailout of the USPS was not passed by Congress, but in the Coronavirus Aid, Relief and Economic Security Act (CARES) Act that was signed into law in March 2020, Congress provided a $10

NARFE MAGAZINE APRIL 2021

billion emergency loan to USPS, which was later converted to a grant in subsequent COVID relief legislation. Grassroots support for change is also strong. “Throughout its long life, the Postal Service has always evolved with the times, and this moment must not be the exception,” says Porter McConnell, a leader of the Save the Post Office Coalition. The coalition is a group of 300 organizations that advocates for legislation to provide financial relief for the USPS, for President Biden to fill the empty seats on the postal Board of Governors with pro-Postal Service members, and for him to name a “postal czar” to coordinate a bold agenda for a Postal Service of the future that includes expanded services.

The Decline of Mail Volume and Continued Cost Cutting Health care prefunding obligations and liabilities are only one challenge confronting USPS. Since the enactment of the PAEA, USPS has experienced a massive decline in mail volume—a nearly one-third reduction from 2007 to 2018—brought on by the Great Recession of 2008 and the continued diversion of mail transactions to digital alternatives such as email and online platforms that allow document creation, signing and sharing. Yet the number of delivery points that USPS must service has continued to grow. “We are delivering fewer pieces of mail to more addresses each year, driving up the cost per delivery,” Brennan said in her testimony. “That combination of declining volume and increased delivery points has financially hobbled the postal system—fewer pieces per stop—inhibiting investments in plants, technology, materials and a modernized delivery fleet to meet the competition and deliver the service the public needs and deserves,” stated Joel Quadracci in his House testimony in 2019. Quadracci is a leader of the Coalition for a 21st Century Postal Service (C21), a large coalition of mailers, shippers, and their supply chain in paper, printing, technology and mail services. Brennan noted that the decrease in mail has also led USPS to engage in vigorous and ongoing cost-cutting, including consolidating processing plants and delivery units; modifying retail hours at more than 13,000 post offices; reducing the

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With NARFE’s thanks, you will receive: • A commemorative NARFE centennial key ring • Recognition in the December NARFE Magazine, on NARFE.org and at NARFE headquarters • Early distribution of the 2022 NARFE calendar

NARFE Centennial Fundraising Ad With your generous contribution, NARFE will be well-positioned to continue the fight to preserve the benefits and recognition federal employees deserve.

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total workforce size by 162,000 through attrition; reducing administrative overhead; and negotiating collective bargaining contracts to control costs, increase workforce flexibility, and establish a more affordable, two-tiered wage system. Aggressive cost-cutting actions were enacted by the current postmaster general, Louis DeJoy, a former private-sector supply chain executive appointed by the USPS Board of Governors last June. Critics contended that DeJoy’s measures led to notable postal delivery delays, generating widespread opposition. An October USPS Inspector General report faulted USPS management for launching operations changes without studying or analyzing their impacts. Many fear that further cuts, such as reducing current six-day-a-week service by one day, easing other metrics of timeliness, or reducing the number of delivery points, could impair the quality of service and the agency’s model of universal service to all Americans. Biden, in his candidate statement to NARFE, expressed support for the agency and for maintaining universal service.

New Revenue Options

In addition to reducing costs, USPS has tried to address its financial challenges by finding new sources of revenue. An important bright spot for the Postal Service has been its competitive products, including package delivery services. Success in that area allowed USPS to increase its rates for package delivery services by more than 65 percent from 2008 to 2018 and to reduce the overall losses of the agency. Many parties have proposed further USPS service expansions to further boost revenue. Some proposals include expanding the use of post offices as retail locations for banking (they already provide some financial services, such as money orders) and other activities; allowing delivery of alcoholic beverages; and contracting to provide state, local and tribal governments use of postal property and services. A number of these activities are prohibited

NARFE MAGAZINE APRIL 2021

or not explicitly allowed under current USPS statutes and would require new federal legislation for enactment. Additionally, some groups question how substantial the revenues for many of these new activities would be, and some proposals are opposed by private sector competitors. Postal banking legislation was introduced last September in the Senate but didn’t see further congressional action.

The Coronavirus Challenge

As if the challenges described previously were not enough, USPS has had to weather the COVID-19 pandemic. Directly exposed to the public in many of its roles, USPS employees continue to provide essential services in person—and have paid the price. As of December, more than 23,000 postal employees had tested positive for COVID-19 and more than 100 had died from conditions related to COVID-19, according to Government Executive. “It’s been a tough year—a lot of things have happened to us,” says Tommy, a 29-year veteran USPS letter carrier in San Jose, CA, who requested that his last name not be used. “We didn’t have protective gear at first, and then we finally got that. Something as basic as comfort stops to use restrooms in restaurants weren’t allowed anymore due to COVID-19, which meant you had to go back to the station, and we have to spend time to keep wiping down our vehicles. Yet management would be upset that that caused us to take more time for deliveries. The load of parcels was tremendous—we did double our normal numbers. “We had some carriers, especially those over 65, react to the risk and the stress by retiring or leaving the service. And we do hear the talk that the Postal Service will run out of money, and we are concerned about it; old-timers reassure us that Congress has always come through in the past, such as with loans. “We also try to look for the good side of things where we can: We are essential workers who have our jobs when many others have lost theirs.” —DAVID TOBENKIN IS A FREELANCE REPORTER BASED IN THE GREATER WASHINGTON, DC, AREA.

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ach year, millions of collectors and silver stackers around the word secure freshly struck American Eagle Silver Dollars. Minted in one Troy ounce of 99.9% pure U.S. silver, these legaltender coins are perhaps the most widely collected silver bullion coins in the world... and they’re about to change forever.

Final Release of Original Silver Eagle Design

Since 1986, the design of the “Silver Eagle” has remained unchanged: Adolph A. Weinman’s classic 1916 Walking Liberty design paired with former U.S. Mint Chief Engraver John Mercanti’s stunning eagle reverse. But in mid-2021, the U.S. Mint plans to replace the original reverse. This initial release is the FINAL appearance of the U.S. Silver Eagle’s original design! $27 $26 $25 $24 $23 $22 $21 $20 $19 $18 $17 $16 $15 $14

20 20 20 20 20 20 20 20 20 20 20 20 21 20 0 0 0 20 20 20 20 20 20 20 0 0 N B2 R2 R2 Y E Y G T T V C2 2 JA FE MA AP MA JUN JUL AU SEP OC NO DE JAN

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In the last 12 months, average monthly values of silver bullion have increased nearly 68%! Additionally, the COVID-19 pandemic resulted in the U.S. Mint slowing production of freshly struck 2020 Silver Eagles—and this could reoccur. Add in the final issue of the original design, and you have a trifecta of demand that has buyers around the world ready to pounce.

Timing is Everything This is a strictly limited release offer for one of the world’s most popular silver coins. As the last mintage to feature the original, 35-year-old design, it represents the end of an era at a time when silver values have seen a massive increase. Once word gets out that these 2021

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Managing Money

Does Front-Loading Contributions Lead to Larger TSP Balances? ast month’s column discussed the Thrift Savings Plan’s (TSP’s) new contribution election rule and explained that although the new rule simplifies the contribution election

process, it does create more work for those who had been frontloading their catch-up contributions and wish to continue doing so. I then posed the question, is front-loading contributions worth the extra effort?

To answer this, I put together a hypothetical illustration (using the TSP’s historical returns for years 2000 through 2019) comparing the ending account values when using a frontloading contribution strategy versus a level contribution strategy. Front-loading contributions involves making larger contributions in the early pay periods to reach the annual limit in as few pay periods as possible, while the level strategy involves spreading equal contributions over all pay periods. Technically speaking, the first year for catch-up contributions wasn’t until 2002, and the limit then was only $1,000. Regardless, I started the illustration in the year 2000 and assumed a $6,500 contribution each year. My goal wasn’t as much about showing

the historical outcome as it was about highlighting the potential outcome going forward. Besides, the front-loading strategy was never limited to only catch-up contributions; a participant always had the option to frontload regular contributions as well. In doing so, however, Federal Employees Retirement System (FERS) participants would need to reduce their contributions at some point to ensure that they contributed at least 5 percent of their pay during all pay periods. Otherwise, they would risk missing out on some agency matching contributions. This is the very issue the new single contribution election system presents, and why those who had been front-loading their catch-up contributions must now work a little harder to do so.

Only annual and monthly returns are available on the TSP’s website, so, accordingly, the example assumes monthly TSP contributions rather than the biweekly contributions most federal employees make. Furthermore, the front-loading contribution strategy is based on monthly contributions of $1,083.33 for the first six months of each year, followed by no contributions the remaining 6 months of the year, while the level contribution strategy assumes equal monthly contributions of $541.67 each year. To keep things simple, the illustration compares the contribution strategies using just two TSP account allocations—the first is allocated 100 percent to the G Fund and the second is allocated 100 percent to the C Fund. The example is broken down into three time periods— the 10-year period ending December 31, 2009; the 10-year period ending December 31, 2019; and the 20-year period ending December 31, 2019. As you can see in the table below, the front-loading contribution strategy—for both the 100 percent G Fund

ENDING ACCOUNT VALUES 100% G FUND START YEAR

END YEAR

LEVEL

FRONT-LOADING

100% C FUND LEVEL

FRONTLOADING

2000

2009

$80,747

$81,685

$69,653

$69,739

2010

2019

$72,829

$73,234

$134,320

$136,994

2000

2019

$175,502

$175,079

$383,371

$386,295

NARFE MAGAZINE APRIL 2021

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allocation and the 100 percent C Fund allocation— produced larger ending account balances for all observed periods. The TSP’s G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP, and although the interest rate will change, the G Fund will never lose value. It, therefore, only makes sense that front-loading contributions will always produce superior results when a participant’s TSP is allocated entirely in the G Fund. The same cannot be said, however, when a TSP allocation includes any of the four individual funds (C, S, I or F). Although the front-loading contribution strategy for the 100 percent C Fund allocation did result in larger ending account balances, there’s no guarantee this will always be the case.

In certain periods of market volatility, frontloading contributions in a TSP account that holds any fund other than the G Fund may result in a lower ending account balance. In fact, this was the case during much of the 10-year period ending December 31, 2009, when the front-loading strategy using the C Fund allocation fell behind in 2002 and didn’t regain its lead over the level contribution strategy until 2009. Any time a discussion involves investment returns, it’s worth noting that past performance is not a guarantee of future results. Happy investing. MARK A. KEEN, CFP®, IS PARTNER, KEEN & POCOCK, AND AN INVESTMENT ADVISER REPRESENTATIVE AND REGISTERED PRINCIPAL OF THE STRATEGIC FINANCIAL ALLIANCE, INC. (SFA). SECURITIES AND ADVISORY SERVICES ARE OFFERED THROUGH SFA.

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For the Record

VACCINATIONS, STIMULUS HOPES DRIVE INVESTOR OPTIMISM

THRIFT SAVINGS PLAN FUND RETURNS

’20

2021

G FUND

2021

C FUND

S FUND

I FUND

FEBRUARY

0.08%

-1.45%

2.76%

5.21%

2.26%

JANUARY

0.07%

-0.71%

-1.01%

2.85%

-1.09%

DECEMBER

0.07%

0.14%

3.84%

7.24%

4.64%

YTD

0.15%

-2.15%

1.72%

8.21%

1.15%

1 YEAR

0.82%

1.37%

31.20%

56.07%

21.91%

3 YEAR*

1.95%

5.35%

14.09%

18.56%

5.19%

5 YEAR*

2.01%

3.66%

16.80%

19.96%

10.13%

10 YEAR*

2.01%

3.80%

13.45%

13.58%

5.39%

L INCOME

L 2025

L 2030

L 2035

L 2040

FEBRUARY

0.63%

1.35%

1.70%

1.86%

2.03%

JANUARY

-0.10%

-0.24%

-0.32%

-0.35%

-0.37%

1.07%

2.27%

2.79%

3.06%

3.34%

0.53%

1.10%

1.38%

1.50%

1.65%

1 YEAR

7.33%

N/A

18.82%

N/A

22.55%

3 YEAR*

4.50%

N/A

8.34%

N/A

9.50%

5 YEAR*

4.92%

N/A

10.31%

N/A

11.79%

10 YEAR*

4.16%

N/A

8.05%

N/A

9.01%

L 2045

L 2050

L 2055

L 2060

L 2065

2021

DECEMBER YTD

FEBRUARY

2.17%

2.32%

2.93%

JANUARY

-0.39%

-0.41%

-0.44%

’20

F FUND

DECEMBER

3.59%

3.83%

4.63%

YTD

1.77%

1.90%

2.48%

2.47%

1 YEAR

N/A

25.86%

N/A

3 YEAR*

N/A

10.46%

N/A

5 YEAR*

N/A

13.11%

N/A

10 YEAR*

N/A

9.80%

N/A

*ANNUALIZED.

Equity investors drew optimism from healthier-thananticipated corporate earnings, expectations for a forthcoming stimulus package, and the continued rollout of coronavirus vaccines. While some observers viewed the significant increases in market interest rates and commodity prices as welcome signs of economic recovery, others expressed concerns about rising expectations for inflation. The C and S Funds posted gains. The I Fund also rose, hampered slightly by a marginally stronger U.S. dollar. Rising interest rates resulted in a loss for the F Fund. All the L Funds finished higher. —BY MICHAEL JERUE, FINANCIAL ANALYST, TSP RETURNS are net of the effect of accrued administrative expenses and investment expenses/costs. Source: TSP G Fund: Government securities (specially issued to the TSP) F Fund: Government, corporate and mortgage-backed bonds C Fund: Stocks of large- and medium-size U.S. companies S Fund: Stocks of small- to medium-size U.S. companies (not included in the C Fund) I Fund: International stocks of 21 developed countries L Fund: (Lifecycle) Invested in the G, F, C, S and I Funds (The proportion of L Fund balance invested in each of the individual TSP funds depends on the L Fund chosen.)

COUNTDOWN TO COLA The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 0.48 percent in January 2021. To calculate the 2022 cost-of-living adjustment (COLA), the 2021 third-quarter indices will be averaged and compared with the 2020 third-quarter average of 253.412. The percentage increase determines the COLA. December’s index, 255.296, is up 0.74 percent from the base. The CPI represents purchases of food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. For FECA COLA updates, visit narfe.org and search for FECA.

OPM RETIREMENT CLAIMS PROCESSING STATUS

’21

2020

Claims Received

MONTH

Inventory Monthly FYTD (Steady State Average Processing Average Processing is 13,000) Time in Days Time in Days

JANUARY 17,134 23,983 FEBRUARY 9,273 23,629 MARCH 6,566 21,264 APRIL 6,740 19,889 MAY 6,648 18,177 JUNE 6,555 17,432 JULY 6,819 17,631 AUGUST 6,775 18,570 SEPTEMBER 6,244 18,274 OCTOBER 8,323 19.605 NOVEMBER 5,876 20,022 DECEMBER 5,135 19,687 JANUARY 13,850 26,968

58 54 61 68 83 81 95 73 73 77 74 74 85

61 59 60 61 64 65 68 68 69 77 76 75 78

FOR THE NUMBER of new retirement cases the Office of Personnel Management (OPM) receives each month by agency and the percent with errors that it returns to those agencies, go to www.opm.gov/retirement-services/. l Source: OPM 44

NARFE MAGAZINE APRIL 2021

CPI-W

Monthly % Change

% Change from 253.412

OCTOBER 2020

254.076

0.03

0.26

NOVEMBER

253.826

-0.10

0.16

DECEMBER

254.081

0.10

0.26

JANUARY 2021

255.296

0.48

0.74

FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER

Donate

to NARFE Programs

Support Alzheimer’s Research NARFE members contributed for Alzheimer’s research: $14 Million Fund

$13,798,467.25*

Enclosed is my NARFE-Alzheimer’s contribution: $ _________ Every cent that is contributed is used for research. q Mr.

q Mrs. q Miss q Ms.

*Total as of January 31, 2021. 100 percent of all contributed funds go to Alzheimer’s research.

Name: ______________________________________________

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Give to the NARFE-FEEA Fund MAKE CHECK PAYABLE TO: NARFE-FEEA Fund PLEASE MAIL COUPON AND CHECK TO: FEEA 1641 Prince St. Alexandria, VA 22314 YOUR CHARITABLE CONTRIBUTION IS TAX-DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

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The NARFE-FEEA Fund supports NARFE members during disasters; provides scholarships to their children, grandchildren and great-grandchildren; and funds other programs to support NARFE members at the direction of NARFE and FEEA. Enclosed is my NARFE-FEEA Fund Contribution: $ _________ Name: ______________________________________________ Address: ____________________________________________ City: ________________________________________________ State: _______________________________________________ ZIP: ________________________________________________ Email: ______________________________________________

To make credit card or e-check contributions, visit www.feea.org/givenarfe.

NARFE News PSRW IN MAY

Are You Taking Advantage of All Your NARFE Member Resources? n a recent survey of a segment of the NARFE membership, respondents noted that the No. 1 reason they join our association is “to get the most out of my federal benefits.”

They also rated NARFE Magazine as the most valuable NARFE member benefit, followed closely by federal benefits articles and webinars.

You’re reading the magazine now, but what if you need important information from this issue (or a previous one) a few months from now, and your magazine has long since been recycled? Not to worry. Just log in to NARFE.org and visit www.narfe.org/narfemagazine to access the archive containing digital versions of every issue published for the past 12 years. And while you’re there, pop over to

Connect with us! Visit us online at www.narfe.org Like us on Facebook NARFE National Headquarters Follow us on Twittter @narfehq

NARFE MAGAZINE APRIL 2021

www.narfe.org/member/ FederalBenefitsInstitute, where you’ll find links to dozens of valuable webinars presented by leading federal benefits experts that you can watch on-demand, anytime, anywhere. Between the vital information contained in the articles and the expert advice from the webinars, you’ll learn to enhance your federal benefits and save money. In addition to taking advantage of our most popular

Get ready to celebrate yourselves and your fellow Feds during Public Service Recognition Week (PSRW), May 2-8. This year’s events will take place virtually. Visit www.narfe.org for more information.

member benefits, are you staying current on the latest federal benefits news that affects you? You are if you’re receiving NARFE NewsLine in your email inbox every Tuesday. NewsLine is NARFE’s weekly e-newsletter with advocacy and federal benefits updates, information about association activities, and other relevant news items. If you are not receiving NewsLine, please send a note to communications@narfe.org, and we’ll make sure you get it each week. Let NARFE keep you informed and help you get more out of your federal benefits—because it pays to be a NARFE member. —BY DAVE BOWMAN, SENIOR DIRECTOR, MEMBERSHIP DEVELOPMENT

SUBSCRIBE TO NARFE’S DAILY NEWS CLIPS Whether you're a policy wonk or a news junkie, our Daily News Clips will keep you updated on all matters important to federal employees and retirees. You'll find informative articles from various outlets curated just for NARFE members, as well as NARFE media statements, op-eds and more. If you would like to sign up to receive this weekday email, visit https://new.narfe.org/ communications/enewsletter/.

NARFE MEMBER BENEFITS • Access the NARFE Federal Benefits Institute for powerful resources to help you fully understand and manage your benefits.

Active and Retired Federal Employees ... Join NARFE Today! The only organization dedicated solely to protecting and preserving the benefits of all federal workers and retirees, NARFE informs you of any developments and proposals that affect your compensation, retirement and health benefits, AND provides clear answers to your questions.

Who Should Join NARFE?

If your future security is tied to federal retirement benefits—federal retirees, current employees, spouses and individual survivors—you should join NARFE.

• Visit the Legislative Action Center to contact your representatives about bills affecting federal benefits. • Get NARFE Magazine with news and insights for the federal community. • Save time, hassle and money with NARFE Perks. • The opportunity to get involved at the local level by joining a chapter in your area. 1Q6

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1. Complete this application and mail with your payment to NARFE Member Services / 606 N Washington St / Alexandria, VA 22314-1914.

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NARFE News

FEDERATION CONFERENCES AND ELECTION INFORMATION

This information was correct as of press time in late February; however, because of potential COVID-19 restrictions, please contact your federation to make sure these details are current.

2021 FEDERATION CONFERENCES COLORADO: October 7 in Aurora DISTRICT OF COLUMBIA: April 24 ILLINOIS: September 27-29 in Normal KANSAS: April 26 -27 in Salina MASSACHUSETTS: May 6-7, virtual (register at https://us02web.zoom. us/j/87354549958)

NORTH CAROLINA: May 12, virtual (register by email to Register@ NCNARFE.org) OKLAHOMA: August or September, to be determined OREGON: May 16-18 in Newport (if virtual, visit https://global. gotomeeting.com/join/748455997)

MISSISSIPPI: April 8-10 in Louisville

SOUTH DAKOTA: August 18-20 in Pierre

MISSOURI: April 22, virtual

TEXAS: April 13-14 in San Antonio

NEBRASKA: May 13-14 in Lincoln

VIRGINIA: October 11-13 in Richmond

NEW JERSEY: April 21, virtual or in person

2021 FEDERATION ELECTIONS ILLINOIS: May 19 Cynthia Soltes, cynthiasoltes@sbcglobal.net, www.narfe.org/il KANSAS: March and April by mail John Ourada, (785) 643-8506 or john.ourada@cox.net; www.narfe.org/ks/ MASSACHUSETTS: April 5-26 by mail Gene Holt, 978-256-6818 or wgholtjr@ verizon.net; www.manarfe.org MISSISSIPPI: April 9 Rhett Hamiter, 228-596-0396, katrdh90@ currently.com, www.NARFE.org/ms NEW JERSEY: April 21 John Szpyhulsky, ukijs@aol.com, www.narfe.org/nj OREGON: March 15 to April 30 Colleen Hewes, hewcol@gmail.com, 541-379-6858, www.narfe.org/or

NARFE MAGAZINE APRIL 2021

As NARFE commemorates its centennial, NARFE Magazine is providing a look back at milestones for the organization and its work on behalf of federal civilian employees, retirees and their survivors. Today, many members of NARFE are part of a local chapter, allowing them to connect with neighbors, form bonds and work together to advocate for their benefits. But for its first quarter-century, the association had no chapter structure. It was not until 1947 that NARFE’s constitution was amended to permit the chartering of chapters in local communities. The first three chapters were chartered in Washington, DC; Topeka, KS; and Los Angeles, CA. Chapter 0001, in the District of Columbia, and Chapter 0002, in Kansas, are still active today. Visit narfe.org/centennial for more about NARFE’s century of service. Eargo and GEHA are proud sponsors of NARFE’s Centennial.

Gear up for NARFE’s Centennial ShopNARFE is the official online store offering NARFE-branded merchandise. A portion of the proceeds from all purchases support the organization. Shop now at www.narfe.org/shopnarfe.

His & Hers Jackets and Polos Bumper Sticker & Auto Magnets Commemorative Key Ring

ShopNARFE

Centennial Lapel Pin Tote Bags

Face Masks

License Plate Frames

And More!

NARFE.org/shopnarfe NARFE MAGAZINE www.NARFE.org

USE YOUR NARFE PERKS AND YOUR MEMBERSHIP WILL MORE THAN PAY FOR ITSELF! PRODUCTS

ADT Home Security 844-556-6571 | www.protectyourhome.com/offer-detail

Get Your FREE* ADT-monitored home security system today AND $100 Visa reward card from Protect Your Home ADT Authorized Premier Provider. A safer home and peace of mind are just one click away. *New customers only. Visit website for full details of offer.

NEW!

LegalShield 410-419-7130 | www.legalshield.com/info/narfe

Whether it’s big, small or somewhere in between, you have affordable legal help when you need it. Members receive the discounted rate of $16.95 for individuals and $18.95 for families of 10 (two adults and up to 8 children).

Office Depot 855-337-6811 x 2897 | www.officediscounts.org/narfe

Because you’re a member of NARFE you have access to exclusive, members-only discounts at Office Depot and OfficeMax. Office Depot and OfficeMax offer thousands of products discounted below retail pricing both online and in any store location. With your NARFE membership, you can save up to 75% off regular prices (as listed on officedepot.com) on our Best Value List of preferred products. Create an account and browse through our discounts, or shop in-store by printing your FREE Store Purchasing Card. Visit https://officediscounts.org/ narfe for details and more! Text NARFESPC to 833‑344‑0228 and save your free store discount card on your phone.

Omaha Steaks www.omahasteaks.com/NARFE

ENJOY FREE SHIPPING ON EXCLUSIVE COMBOS AND AN EXTRA 10% OFF YOUR ENTIRE ORDER WITH OMAHA STEAKS! Omaha Steaks delivers the finest in gourmet steaks, seafood, poultry, sides and desserts. NARFE members can enjoy FREE SHIPPING on select combos and an additional 10% DISCOUNT off entire order.

Purchasing Power www.PurchasingPower.com/NARFE

While not a discount program, Purchasing Power is an exclusive purchase program helps members buy brand-name computers, electronics, appliances and furniture via annuity allotment when cash is not an option. No credit check or down payments.

Sam’s Club 877- 579-1201 l Use the Link Below to Sign Up Now!

NARFE Members can now take advantage of huge savings at Sam’s Club with an exclusive membership offer! Save up to 40% on a 1-year membership and receive a limited-time free gift upon purchase! To sign up please visit: www.rebrand.ly/narfe-samsclub

Ship Sunshine www.shipsunshine.com

Ship Sunshine offers cheery gifts - at all price levels - for all occasions, and especially for no occasion at all! You can also build your own custom gift and include personalized items. Use promo code NARFE at www.shipsunshine.com for a 5% discount!

MOVING SERVICES

Coleman Allied 850-375-0917 | jack.jacobs@colemanallied.com

With over 300 agency partners and an entire team dedicated to a quality move experience, Coleman Allied provides customized discount levels for all NARFE members for Interstate moves. *The NARFE pricing only applies to moves that leave the state you currently reside in.

Wheaton World Wide Moving 800-248-7960 | narfe@wvlcorp.com

At Wheaton, we know interstate relocation is much more than trucks and boxes. With a network of top-quality agents throughout the United States, Wheaton provides peace of mind with every relocation.

NARFE Insurance Services 800-233-5764 | www.narfeinsurance.com

INSURANCE

Designed exclusively for NARFE members, (plans administered by Mercer) Senior Age Whole Life Insurance, Senior Term Life Insurance, Hospital Income and Short Term Recovery Insurance, Dental Insurance, Vision Insurance, AssistPlus, Discount Prescription Plan and Pet Insurance.

Choice Hotels International 800-258-2847 | www.choicehotels.com

TRAVEL & TRANSPORT

With 6,400 hotels throughout the world, Choice Hotels offers something for everyone. As a member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967.

Enterprise Rent-A-Car® Book Now! https://partners.rentalcar.com/narfe

When you’re ready to go, Enterprise Rent-A-Car makes it easy. We offer everyday low rates on a great selection of cars, trucks and vans and customers are picked up at no extra cost*. See website for exclusions.

Extra Holidays 800-428-1932 | www.Extraholidays.com

Excellent service and the finest comforts are standards you can always rely on with Extra Holidays. With more spacious floor plans than a regular hotel, you can enjoy a One-, Twoor Three-Bedroom suite with partial or fully equipped kitchens. Advanced reservations required.

National Car Rental® 800-CAR-RENT | www.nationalcarrental.com

NARFE members receive great rates with National Car Rental! At National, we pride ourselves on always providing you with unsurpassed convenience and choice. Book Now! https://partners.rentalcar.com/narfe

Brookdale Senior Living Communities 877-713-2762 | www.brookdale.com/narfe

WELLNESS

As the largest operator of senior living communities in the US, Brookdale has over 1,000 locations all across the country. Members are eligible for 7.5% discount at Brookdale Independent Living, Assisted Living and Memory Care communities and 10% discounts on Brookdale Private Duty Home Care. Discounts are for new move-ins/customers only.

Life Line Screening 800-324-9906 | www.lifelinescreening.com/NARFE R

PRE-PLANNING

Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct health screenings using state-of-the-art ultrasound technology in your neighborhood. Operator code BKHN075.

Neptune Society 800-NEPTUNE (637-8863) | www.neptunesociety.com

Our prearranged plans cover all necessary expenses for one guaranteed price even if the services are not needed for 40 or 50 years. The Neptune Society offers a $100 discount to all NARFE members. Discounted offer is not valid for residents of Louisiana, Tennessee and Kentucky. Void where prohibited.

ADDITIONAL PERKS

SEE HOW MUCH YOU CAN SAVE AT

www.NARFE.ORG/memberperks

The Way We Worked

Feat of Engineering National Park Service workers stand at the west entrance to the Zion-Mount Carmel Tunnel in southern Utah in 1929. The 5,613-foot tunnel is part of a 25-mile highway devised to shorten the distance from Zion National Park to Bryce Canyon National Park, with construction beginning in 1927 and ending in 1930. In 1989, the Federal Highway Administration determined that large vehicles could not negotiate the tunnel safely, so NPS rangers were stationed at both ends to convert the tunnel to one-way traffic for larger vehicles. The tunnel is listed on the National Register of Historic Places. PHOTO by George Alexander Grant, first National Park Service chief photographer, courtesy of the National Archives History Office, in collaboration with the Society for History in the Federal Government (SHFG), bringing together government professionals, academics, consultants, students and citizens interested in understanding federal history work and the historical development of the federal government. To join, visit www.shfg.org.

NARFE MAGAZINE APRIL 2021

DID YOU KNOW? The National Park Service was created in 1916, but the nation’s first national park, Yellowstone National Park, was established by President Ulysses S. Grant on March 1, 1872. Today, NPS has roughly 20,000 full-time, part-time and seasonal employees, as well as approximately 280,000 volunteers.

The Way We Worked celebrates the past 100 years of public service through archival images. Eargo and GEHA are proud sponsors of NARFE’s Centennial.

5 Great Reasons

Why Oticon More could be the answer to your hearing problems. TM

1 Oticon More with Brain HearingTM technology

A revolutionary hearing aid that gives the brain more of the relevant information it needs to make better sense of sound. So you can get better speech understanding with less effort and the ability to remember more.

3 Connectivity made easy

Simple, wireless connectivity to your favorite devices via Bluetooth®. Make hands-free calls, stream music, connect to smart devices and more!

2 The hearing aid with built-in intelligence Works more like how the brain works because it learned through experience. Clinical studies prove Oticon More delivers 30% more sound to the brain and increases speech understanding.1

4 Never change a battery again

A trouble-free rechargeable solution allows you to recharge at night for a full day of hearing. FREE charger included!2

5 No out of pocket expense

Take advantage of your $2500 hearing benefit! You may be eligible for a pair of Oticon MoreTM3 hearing aids for $0 out of pocket.3

This special offer for federal employees and retirees is available only at Your Hearing Network locations. To find your location call 1-877-696-5335. Compared to Oticon Opn STM, Santurette, et al. 2020. Oticon More clinical evidence. Oticon Whitepaper Lithium-ion battery performance varies depending on hearing loss, lifestyle and streaming behavior. 3 Your out-of-pocket costs may vary depending on plan benefits, eligibility, deductible, co-insurance, and model of device chosen. This is not a guarantee of coverage or payment. Benefit is not available through all insurance plans. Please call us to verify your coverage. 1 2

Learn how to save on your hearing health!

Two hearing aids with $0 out-of-pocket! Call today to see if you qualify* With more than 30 years in hearing care, HearUSA has helped over 1 million people experience a better quality of life through better hearing. As a NARFE member you have access to the latest hearing aid technology. Receive the highest level of quality hearing healthcare service in the industry. There have been such amazing advancements in hearing aid technology — the options are almost limitless in terms of size, comfort, sleek styling and rechargeable technology. Conversation in background noise, hearing the television and speaking on the phone all become easy again!

Telehealth Available • FREE service visits for one year • FREE three year warranty, loss & damage, batteries • Risk-free 60-day trial • 10% off hearing accessories at hearingshop.com

In-person or telehealth appointments available. Schedule your FREE hearing appointment today: 1-855-252-0025

*This is not insurance and insurance benefits vary. Some restrictions apply. 1 year battery supply with purchase of hearing aids. Offer valid at participating HearUSA providers only. Call for details.

April 2021 NARFE Magazine

Articles inside

Bill to Repeal WEP and GPO Reintroduced in House

Legislation to End USPS Prefunding Mandate Reintroduced

Managing Money

Prepare to Engage Lawmakers During the First Extended Congressional Recess of 2021

Member Perks

From the President